Notes to SEFA
Title: Note 4 - Loan and loan guarantee programs
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: HANAC has not elected to use the 10% de minims indirect cost under the Uniform Guidance.
Loans outstanding at the beginning of the year plus loans made during the year are included in the federal expenditures presented in the Schedule. The balance of the loan outstanding at June 30, 2023, consists of the following : Assistance Living Number: 14.157; Program Name: Supportive Housing for the Elderly - Section 202 Loan Outstanding - affiliated project; Outstanding balance at June 30, 2023: $10,251,400
Title: Note 5 - Reimbursement
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: HANAC has not elected to use the 10% de minims indirect cost under the Uniform Guidance.
HANAC has contracted with various funding agencies to perform certain services. Reimbursements received under these contracts are subject to audit by the federal, state and city governments. Upon audit, if discrepancies are discovered, HANAC could be held responsible for reimbursing the agencies for the amounts in question.
Title: Note 1 - Basis of presentation
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: HANAC has not elected to use the 10% de minims indirect cost under the Uniform Guidance.
The accompanying schedule of expenditures of federal awards ("Schedule") includes the federal award activity of HANAC, Inc. and Affiliates ("HANAC"), under programs of the federal government for the year ended June 30, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards ("Uniform Guidance"). Because the Schedule presents only a selected portion of the operations of HANAC, it is not intended to and does not present the consolidated and combined financial position, changes in net assets, or cash flows of HANAC. All financial assistance received directly from the federal agencies as well as financial assistance passed through other governmental agencies or nonprofit organizations is included on the Schedule.