Notes to SEFA
Title: SUBRECIPIENTS
Accounting Policies: BASIS OF PRESENTATION
The schedule of expenditures of federal awards includes the federal grant activity of HUD Organization No. 031-HD162 of Demarest Farms 2, Inc. (the Organization), and is presented on the accrual basis of accounting. 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. Therefore, some amounts presented in this schedule may differ from amounts
presented in, or used in the preparation of, the financial statements.
De Minimis Rate Used: N
Rate Explanation: During the year ended December 31, 2023, the Organization did not elect to use the de minimis cost rate when allocating indirect costs to its federal programs.
During the year ended December 31, 2023, the Organization did not provide any funds relating to its federal programs to subrecipients.
Title: LOAN AND LOAN GUARANTEE PROGRAMS
Accounting Policies: BASIS OF PRESENTATION
The schedule of expenditures of federal awards includes the federal grant activity of HUD Organization No. 031-HD162 of Demarest Farms 2, Inc. (the Organization), and is presented on the accrual basis of accounting. 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. Therefore, some amounts presented in this schedule may differ from amounts
presented in, or used in the preparation of, the financial statements.
De Minimis Rate Used: N
Rate Explanation: During the year ended December 31, 2023, the Organization did not elect to use the de minimis cost rate when allocating indirect costs to its federal programs.
As of December 31, 2023, there is $1,488,400 outstanding on the HUD capital advance.