Notes to SEFA
Accounting Policies: Note A - Basis of Presentation
The accompanying schedule of expenditures of federal awards (the schedule) includes the federal ward
activity of The Meadows of Wesley Village under programs of the federal government for the year ended
December 31, 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 The Meadows of Wesley Village, it is not intended
to and does not present the financial position, changes in net assets, or cash flows of The Meadows of
Wesley Village.
Note B – Summary of Significant 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 Office of Management and
Budget Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal
Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Note C – Federally Funded and Insured Mortgages
The acquisition and construction of the Project was funded by capital advances from HUD under Section
202 of the National Housing Act of 1959. As a condition for the capital advances, the Corporation entered
into the Regulatory Agreement with HUD, and executed a mortgage note payable to HUD in the amount
of $2,170,100. The mortgage note bears no interest and repayment is not required so long as the Project
provides housing for very low-income elderly or disabled persons in accordance with Section 202. The
mortgage note matures in November, 2040 and is secured by a Deed of Trust. Provided that the housing
has remained available for occupancy by eligible families until maturity and that the mortgage note has
not otherwise become due by reason of default, the mortgage note shall be deemed paid and discharged
at maturity in November, 2040. In the event of default, the entire principal balance plus interest at an
annual rate of 7.75% shall be payable upon demand by HUD.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.