Notes to SEFA
Title: NOTE 2 - MORTGAGE PAYABLE - FEDERAL FUNDS
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal expenditure activity of Millsboro Housing for Progress, Inc. and Affiliates, 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 Title 2 U.S. Code of Federal Regulations (CFR) 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 Entity, it is not intended to and does not present the Entity's financial position, changes in net assets, or cash flows.
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.
De Minimis Rate Used: N
Rate Explanation: Management did not elect to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
USDA - RD: Long-term debt instruments were provided by RD pursuant to its Rural Housing Program under Section 521 of the National Housing Act of 1949 for Millsboro Village I Apartments, Millsboro Village II Apartments, and Old Landing I Apartments. The long-term debt instruments are secured by a mortgage against the real estate, an interest in personal property, and an assignment of income to be derived from the Projects.
DSHA - HOME: A long-term debt instrument was provided by DSHA pursuant to the HOME program for Millsboro Village I Apartments. The long-term debt instrument is secured by a mortgage against the real estate, an interest in personal property, and an assignment of income to be derived from the Project.
Title: NOTE 3 - OTHER AWARDS
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal expenditure activity of Millsboro Housing for Progress, Inc. and Affiliates, 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 Title 2 U.S. Code of Federal Regulations (CFR) 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 Entity, it is not intended to and does not present the Entity's financial position, changes in net assets, or cash flows.
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.
De Minimis Rate Used: N
Rate Explanation: Management did not elect to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
Subsidy revenues for low-income, elderly, or disabled tenants are provided under housing assistance payment contracts. These contracts require tenants to contribute a portion of the contract rent. The difference between the calculated tenant rent and the contract rent is paid by the awarding agency. During 2023, Millsboro Village I earned rental assistance from a HUD Section 8 contract in the amount of $470,229.