Notes to SEFA
Title: Note 1 – Basis of Presentation
Accounting Policies: Balances are pulled directly from two GL accounts specifically used to account for the insured financing and the rent subsidy received on an accrual basis. Management is very experienced in these areas, key personnel have not changed in several years and the methods are unchanged from the prior year.
De Minimis Rate Used: Y
Rate Explanation: de minimis
The accompanying schedule of expenditures of federal awards includes the federal grant activity of Jerald H Merrill Senior Housing, LLC, HUD Project No. 105-EE007, and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Management has elected to use the 10% de Minimis indirect cost rate for certain costs.
Title: Note 2 – Loans Outstanding
Accounting Policies: Balances are pulled directly from two GL accounts specifically used to account for the insured financing and the rent subsidy received on an accrual basis. Management is very experienced in these areas, key personnel have not changed in several years and the methods are unchanged from the prior year.
De Minimis Rate Used: Y
Rate Explanation: de minimis
Jerald H Merrill Senior Housing, LLC, had the following loan balances outstanding at December 31, 2023: Section 202 Capital Advance with the Department of Housing and Urban Development in the amount of $1,798,190. (See Note 6 – Capital Advance) The loan balance outstanding is included in the federal expenditures presented in the schedule.