Notes to SEFA
Title: BASIS OF PRESENTATION
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Suchexpenditures are recognized following the cost principles contained in the UniformGuidance, wherein certain types of expenditures are not allowable or are limited as toreimbursement. The Corporation has elected not to use the 10-percent de minimis indirectcost rate allowed under the Uniform Guidance. There were no sub-recipients during the yearended June 30, 2022.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The accompanying schedule of expenditures of federal awards (the Schedule) includes thefederal grant activity of Germantown Home Section 202 Corporation, T/A The Apartmentson the Germantown Home Campus, HUD Property No. 034-EE119 (the Corporation)under programs of the federal government for the year ended June 30, 2022. The informationin this Schedule is presented in accordance with the requirements of Title 2 U.S Code ofFederal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles andAudit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presentsonly a selected portion of the operations of Germantown Home Section 202 Corporation, T/AThe Apartments on the Germantown Home Campus, HUD Property No. 034-EE119, it is notintended to and does not present the financial position, changes in net assets or cash flows ofGermantown Home Section 202 Corporation, T/A The Apartments on the GermantownHome Campus, HUD Property No. 034-EE119.
Title: U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD) CAPITAL ADVANCE
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Suchexpenditures are recognized following the cost principles contained in the UniformGuidance, wherein certain types of expenditures are not allowable or are limited as toreimbursement. The Corporation has elected not to use the 10-percent de minimis indirectcost rate allowed under the Uniform Guidance. There were no sub-recipients during the yearended June 30, 2022.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Corporation has received a HUD Capital Advance under Section 202 of the NationalHousing Act (Capital Advances). The balance of the Capital Advances at the beginning ofthe year is included in the federal expenditures presented in the Schedule. The Corporationreceived no additional capital advances during the year. The balance of the Capital Advancesat June 30, 2022 consists of the HUD Section 202 Capital Advances in the amount of$7,408,700. The Corporation received $338,317 in project rental assistance payments under aProject Rental Assistance Contract under the same CFDA number (14.157), which isseparately presented on the Schedule.