Notes to SEFA
Title: Insured Mortgage Loan
Accounting Policies: Basis of Presentation: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Winona Arms, Inc. under programs of the federal government for the year ended June 30, 2022. 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 Winona Arms, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Winona Arms, Inc.
De Minimis Rate Used: N
Rate Explanation: 1) Expenditures reported on the Schedule are reported on the accrual basis of accounting,except for the mortgage insurance as discussed below.2) Winona Arms, Inc.s federal awards are not based on eligible costs incurred. Accordingly,Winona Arms, Inc. has not made an election related to the use of the 10% de minimis costrate described in the Uniform Guidance.
Federal expenditures for the mortgage insurance program represent the June 30, 2021 balance of aninsured mortgage loan outstanding from a previous year for which the grantor imposes continuingcompliance requirements. The balance of the loan outstanding as of June 30, 2022 is $1,836,264.