Notes to SEFA
Title: NOTE A - 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. Pedigo Apartments II, Inc. has elected not
to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: Pedigo Apartments II, Inc. has elected not
to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award
activity of Pedigo Apartments II, Inc., HUD Project No. 087-EE051-NP-WAH, and is presented on the
accrual basis of accounting. The information in the 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 Pedigo Apartments II, Inc., it is not intended to and does not present the financial position,
changes in net assets, or cash flows of Pedigo Apartments II, Inc.
Title: NOTE B - Summary of significant accounting policies
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. Pedigo Apartments II, Inc. has elected not
to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: Pedigo Apartments II, Inc. has elected not
to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
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. Pedigo Apartments II, Inc. has elected not
to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: NOTE C - U.S. Department of Housing and Urban Development Loan Program
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. Pedigo Apartments II, Inc. has elected not
to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: Pedigo Apartments II, Inc. has elected not
to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Pedigo Apartments II, Inc. has received a U.S. Department of Housing and Urban Development capital
advance under Section 202 of the National Housing Act. The balance is included in the federal expenditures
presented in the Schedule. Pedigo Apartments II, Inc. received no additional funds during the year.