Notes to SEFA
Title: Basis of presentation
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. Negative amounts, if any, shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
De Minimis Rate Used: N
Rate Explanation: Sun Valley Apartments, Inc. has not made an election to use the 10-percent de minimis indirect cost rate
allowed under the Uniform Guidance
The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Sun Valley Apartments, Inc., under programs of the federal government for the year ended June 30, 2023. The information in this Schedule is presented in accordance with the pared 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 Sun Valley Apartments, Inc., it is not intended to and does not present
the financial position, changes in net position, or cash flows of Sun Valley Apartments, Inc.
The section 202 capital advance loan has an outstanding balance due of $949,400. Due to the continuing compliance requirements related to this loan, the entire balance has been considered a current year federal award in accordance with Uniform Guidance.