Notes to SEFA
Title: NOTE 1 - BASIS OF PRESENTATION
Accounting Policies: NOTE 2 - SUMMARY OF SIGNIFICANT 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 OMB Circular A-122,
Cost Principles for Non-profit Organizations, wherein certain types of expenditures are not
allowable or are limited as to reimbursement.
Villa De Lucas, Inc. has elected not to use the 10 percent de minimus indirect cost rate as
allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: NONE
The accompanying schedule of expenditures of federal awards (the Schedule) includes the
federal grant activity of Villa De Lucas, Inc., HUD Project No. 114-HD028, and is presented
on the accrual basis of accounting. The information in the 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 Villa De Lucas, Inc., it is not intended to and does not present the
financial position, changes in net assets, or cash flows of Villa De Lucas, Inc.
Title: NOTE 3 - MORTGAGE NOTE PAYABLE
Accounting Policies: NOTE 2 - SUMMARY OF SIGNIFICANT 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 OMB Circular A-122,
Cost Principles for Non-profit Organizations, wherein certain types of expenditures are not
allowable or are limited as to reimbursement.
Villa De Lucas, Inc. has elected not to use the 10 percent de minimus indirect cost rate as
allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: NONE
The outstanding balance of the loan and loan guarantee program at June 30, 2024 with
continuing compliance requirements which are reported as federal expenditures on the
accompanying schedule of expenditures of federal awards was as follows:
ALN Grant Name Balance at 6/30/2024
14.181 Capital advance mortgage note $ 1,532,900
14.239 HOME investment partnership grant loan $ 100,000