Notes to SEFA
Title: NOTE C - RURAL RENTAL HOUSING LOANS
Accounting Policies: NOTE A - BASIS OF PRESENTATION
The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the Housing Authority of
Pikeville 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 the Authority, it is not intended to and does not present the financial position, changes in net position or cash
flows of the Authority.
NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized
following, as applicable, either the cost principles in OMB Circular A-87, Cost Principles for State and Local Governments, or
the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited
as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The Housing Authority of Pikeville has not elected to use the 10-percent de minimis indirect cost rate allowed under the
Uniform Guidance.
The Housing Authority of Pikeville has two mortgage loans with the U.S. Department of Agriculture. The loan balances as of
December 31, 2023 and 2022 totaled $706,937 and $733,875, respectively. The amount reported on the accompanying
Schedule of Expenditures of Federal Awards includes the loan payment subsidy of $106,720.