Notes to SEFA
Accounting Policies: Note 1 Basis of Presentation The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Authority under programs of the federal government for the year ended September 30, 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 Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of The Authority, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Authority. Note 2 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 Title 2 U. S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. Note 3 Indirect Cost Rate The Authority does not allocate indirect costs and, therefore, has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Note 4 Additional Audits HUD reserves the right to conduct additional audits of the Authority’s grant program for economy and efficiency and program results that may result in disallowed costs to the Authority. However, management does not believe such audits would result in any disallowed costs that would be material to the Authority’s financial position at September 30, 2023.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use de minimis cost rate.