Notes to SEFA
Title: Basis of Presentation
Accounting Policies: (1) Expenditures reported on the Schedule are reported on the accrual basis of accounting, except for the loan balances as discussed below. 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. (2) Pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: Y
Rate Explanation: PPL utilizes an indirect cost rate that was negotiated and approved in 2018 for most federal awards. Some federal awards that were already in progress continued to have the 10% de minimis rate applied in 2021 as allowed under the Uniform Guidance.
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Project for Pride in Living, Inc. (PPL) and certain affiliates under programs of the federal government for the year ended December 31, 2023. PPL’s consolidated financial statements include the operations of various for-profit entities and nonprofit entities. Certain of these entities receive federal awards which were excluded from the Schedule for the year ended December 31, 2023. The for-profit affiliates were excluded from the Schedule because for-profit entities are not required to follow Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance). Such entities followed the requirements of the Consolidated Audit Guide for Audits of HUD Programs (the “Guide”) when required.
The information in this Schedule is presented in accordance with the requirements of the Uniform Guidance. Because the Schedule presents only a selected portion of the operations of PPL, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Project for Pride in Living, Inc. and affiliates.
Title: Loans
Accounting Policies: (1) Expenditures reported on the Schedule are reported on the accrual basis of accounting, except for the loan balances as discussed below. 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. (2) Pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: Y
Rate Explanation: PPL utilizes an indirect cost rate that was negotiated and approved in 2018 for most federal awards. Some federal awards that were already in progress continued to have the 10% de minimis rate applied in 2021 as allowed under the Uniform Guidance.
Federal expenditures for the Community Development Block Grants/Entitlement Grants and HOME Investment Partnerships Programs include $6,754,159 of loans outstanding from previous years for which the grantor imposes continuing compliance requirements. The loan balances are as of December 31, 2022. At December 31, 2023 and 2022, the loans funded by Community Development Block Grants/Entitlement Grants had a balance of $5,054,159 and $5,077,164, and the loans funded by the HOME Investment Partnerships Program had a balance of $1,700,000 and $1,700,000.