Notes to SEFA
Title: Note 1-Basis of Presentation
Accounting Policies: Expenditures reported on the Schedule are recognized following the cost principles 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: The Authority has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of the Rockford Housing Authority (Authority) under programs of the federal government for the year ended September 30, 2023 and is presented on the accrual basis of accounting. 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 Authority, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Authority. The Schedule does not include the federal activity of Orton Keyes, LLC, a discrete component unit. This entity is legally separate from the Authority and is responsible for undergoing a separate compliance audit as needed to comply with HUD Audit Guidelines for for-profit entities.
Title: Note 3-Loans
Accounting Policies: Expenditures reported on the Schedule are recognized following the cost principles 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: The Authority has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
The loans outstanding at the beginning of the year are included in the federal expenditures presented in the Schedule. The balance of all the loans outstanding at September 30, 2023 consist of: 14.218 Community Block/Entitlement Grants $502,,81 and 14.239 Home Investment Partnerships Program $464,073.