Notes to SEFA
Title: Loan/loan guarantee outstanding balances
Accounting Policies: Basis of presentation: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal loan and rental subsidy activity of The Pelham II Corporation (the Corporation) under programs of the federal government for the year ended December 31, 2023. 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 Principle, 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, change in net assets or cash flows of the Corporation. Summary of significant 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.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Loan outstanding: The expenditures of federal awards listed above for CFDA number 14.155 represent the loan balance outstanding as of January 1, 2023, of $23,310,722, which was subject to continuing compliance during the year ended December 31, 2023. The outstanding balance of the mortgage note as of December 31, 2023, totaled $22,881,467.