Notes to SEFA
Title: BASIS OF PRESENTATION
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 the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: Palermo Lakes, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of Palermo Lakes, Inc., HUD Project No. 066-EE100, 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 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 Palermo Lakes, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Palermo Lakes, Inc.
Title: U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
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 the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: Palermo Lakes, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Palermo Lakes, Inc. has received a HUD capital advance under Section 202 of the National Housing Act and a HOME loan passed through the City of Miami. The outstanding balances of the capital advance and HOME loan at the beginning of the year are included in the federal expenditures presented in the Schedule. The outstanding balances of the capital advance and HOME loan as of December 31, 2023 was $9,372,800 and $1,645,973, respectively.