Notes to SEFA
Title: Note 1 - Basis of presentation
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such
expenditures are recognized following, as applicable the cost principles contained in the Uniform
Guidance, wherein certain types of expenditures are not allowable or are limited as to
reimbursement.
De Minimis Rate Used: N
Rate Explanation: The auditee elected to not use the de minimis cost rate per uniform guidance.
The accompanying schedule of expenditures of federal awards ("Schedule") includes the federal
award activity of Bethlehem Ltd., HUD Project No. 071-EH392, under programs of the federal
government for the year ended December 31, 2023. 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
Bethlehem Ltd., it is not intended to and does not present the financial position, changes in net
assets, or cash flows of Bethlehem Ltd. For the year ended December 31, 2023, no awards were
passed through to subrecipients.
Title: Note 2 - Summary of significant accounting policies
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such
expenditures are recognized following, as applicable the cost principles contained in the Uniform
Guidance, wherein certain types of expenditures are not allowable or are limited as to
reimbursement.
De Minimis Rate Used: N
Rate Explanation: The auditee elected to not use the de minimis cost rate per uniform guidance.
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such
expenditures are recognized following, as applicable the cost principles contained in the Uniform
Guidance, wherein certain types of expenditures are not allowable or are limited as to
reimbursement.
Title: Note 3 - Indirect cost rate
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such
expenditures are recognized following, as applicable the cost principles contained in the Uniform
Guidance, wherein certain types of expenditures are not allowable or are limited as to
reimbursement.
De Minimis Rate Used: N
Rate Explanation: The auditee elected to not use the de minimis cost rate per uniform guidance.
Bethlehem Ltd., has not elected to use the 10-percent de minimis indirect cost rate allowed under
the Uniform Guidance.
Title: Note 4 - U.S. Department of Housing and Urban Development loan program
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such
expenditures are recognized following, as applicable the cost principles contained in the Uniform
Guidance, wherein certain types of expenditures are not allowable or are limited as to
reimbursement.
De Minimis Rate Used: N
Rate Explanation: The auditee elected to not use the de minimis cost rate per uniform guidance.
Bethlehem Ltd., has received a mortgage note guaranteed by the Federal Housing Administration.
The loan balance outstanding at the beginning of the year is included in the federal expenditures
presented in the Schedule. Bethlehem Ltd. received no additional loans during the year. The
balance of the loan outstanding at December 31, 2023 amounted to $3,721,497.