Notes to SEFA
Title: Note 1 - Basis of Presentation
Accounting Policies: Expenditures reported on the Schedule of Expenditures of Federal Awards are presented on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in OMBs Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Under federal cost principles, certain types of expenditures are not allowable or are limited as to reimbursement. Passthrough entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: The Agency has elected not to use the 10-percent de minimus indirect cost rate allowed under the Uniform Guidance.
The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Encore Community Services, (the Agency) under programs of the federal government for the year ended June 30, 2022. It does not include programs of subsidiaries referred to in Note 5. 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 Agency, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Agency.
Title: Note 4 - Sub-Recipients
Accounting Policies: Expenditures reported on the Schedule of Expenditures of Federal Awards are presented on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in OMBs Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Under federal cost principles, certain types of expenditures are not allowable or are limited as to reimbursement. Passthrough entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: The Agency has elected not to use the 10-percent de minimus indirect cost rate allowed under the Uniform Guidance.
There were no amounts provided to subrecipients from federal awards received duringthe year ended June 30, 2022.
Title: Note 5 - Capital Advances of Subsidiaries
Accounting Policies: Expenditures reported on the Schedule of Expenditures of Federal Awards are presented on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in OMBs Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Under federal cost principles, certain types of expenditures are not allowable or are limited as to reimbursement. Passthrough entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: The Agency has elected not to use the 10-percent de minimus indirect cost rate allowed under the Uniform Guidance.
Encore West Residence Housing Development Fund Corporation (Encore West Residence), a subsidiary, which is included in the consolidated financial statements of the Agency, has received a HUD capital advance under Section 202 of the National Housing Act. The capital advance balance at the beginning of the year is included in the federal expenditures presented in the schedule of expenditures of federal awards of Encore West Residence. Capital advances are not presented on the Agencys schedule of expenditure of federal awards as they were tested as part of Encore West Residences Single Audit. The Agency received no additional loans or capital advances during the year. The balance of the capital advance outstanding at June 30, 2022 was $13,262,100.