Notes to SEFA
Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal award activity of
Residential Opportunities, Inc. 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 the
Uniform Guidance. Because the Schedule presents only a selected portion of the operations of Residential
Opportunities, Inc., it is not intended to and does not present the financial position, changes in net deficit,
or cash flows of Residential Opportunities, Inc.
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 shown on the
Schedule represent adjustments or credits make in the normal course of business to amounts reported as
expenditures in prior years. Passthrough entity identifying numbers are presented where applicable. The
Corporation has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform
Guidance.
The mortgage balances at the beginning of the year and loans made during the year are included in the
federal expenditures presented in the Schedule.
De Minimis Rate Used: N
Rate Explanation: The
Corporation has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform
Guidance.