Notes to SEFA
Title: NOTE C U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT REFINANCE LOAN
Accounting Policies: NOTE A BASIS OF PRESENTATIONThe accompanying schedule of expenditures of federal awards includes the federal grant activity of VernonSenior Citizens Housing Development Corporation, operating as Sunshine Center Apartments, HUDProject No. 064-11138, and is presented on the accrual basis of accounting. The information in thisSchedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal RegulationsPart 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for FederalAwards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations ofVernon Senior Citizens Housing Development Corporation, it is not intended to and does not present thefinancial position, changes in net assets, or cash flows of Vernon Senior Citizens Housing DevelopmentCorporation.NOTE B SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reported on the Schedule are reported on the accrual basis of accounting. Such expendituresare recognized following the cost principles contained in the Uniform Guidance, wherein certain types ofexpenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: Vernon Senior Citizens Housing Development Corporation has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Vernon Senior Citizens Housing Development Corporation received a HUD mortgage insurance for the refinancing of existing multifamily housing projects under Section 207 of the National Housing Act. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. Vernon Senior Citizens Housing Development Corporation received no additional loans during the year. The balance of the loan outstanding as of March 31, 2022 was $1,240,444 .