Notes to SEFA
Accounting Policies: BURBANK ORCHARDS, INC.
HUD Project No. 121-EH-298
NOTES TO SCHEDULE OF FEDERAL AWARDS
NOTE A: BASIS OF PRESENTATION
The accompanying schedule of expenditures of Federal awards includes the Federal award activity of Burbank Orchards, Inc., under programs of the federal government for the year ended November 30, 2022 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 selected portion of the operations of Burbank Orchards, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Burbank Orchards, Inc.
NOTE B: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Expenditures reported on the schedule are 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 allowed or are limited to reimbursements.
Burbank Orchards, Inc. has elected not to use the 10 percent de minimis indirect cost rate allowed under Uniform Guidance.
NOTE C: FEDERAL LOAN PROGRAMS
The federal loan programs listed subsequently are administered directly by Burbank Orchards, Inc. and balances and transactions relating to the programs are included in Burbank Orchards, Inc.’ basic financial statements. Loans outstanding at the beginning of the year and loans made during the year are included in the federal expenditures presented in the Schedule. The balance of loans outstanding as of November 30, 2023 consists of:
CFDA Number Program Name Outstanding balance at November 30, 2023
14.157 Section 202 Direct Loan Program for Housing
For Elderly or Handicapped $1,307,931
De Minimis Rate Used: N
Rate Explanation: N/A