Notes to SEFA
Title: Basis of Presentation
Accounting Policies: Significant Accounting Policies Expenditures reported in the schedule are reported on the accrual basis of accounting. When applicable 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. No federal financial assistance has
been provided to a subrecipient. Indirect Cost Rate The Corporation does not draw for indirect administrative expenses and has not elected to use the 10% de
minimis cost rate. Federal Loan ProgramExpenditures reported in this schedule consist of the beginning balance of the year outstanding loan balanceplus advances made on the loan during the year. The outstanding balance at December 31, 2023 is $703,793.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of Hong Ning Senior Housing Corporation (the Corporation) under programs of the federal government for the year ended December 31, 2023. The information 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 Corporation, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Corporation.