Notes to SEFA
Title: Note 3 - Housing and Urban Development (HUD) Programs
Accounting Policies: This schedule is prepared on the same basis of accounting as the City of Bellingham's financial statements. The City uses the accrual basis of accounting for proprietary funds and the modified accrual basis of
accounting for governmental funds.
De Minimis Rate Used: Y
Rate Explanation: The City has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
The City administers two HUD sponsored programs titled the Community Development Block Grant Program (CDBG) and the Home Investment Partnership Program. These programs are primarily used for funding low income housing, by granting awards and extending low interest loans that are used for local home and property acquisitions, development, renovation, rehabilitation, and tenant based rental assistance. The loan repayments of principal and interest received throughout the year are considered program income and are used in part for extending new loans thus creating a revolving loan program. Through the (CDBG) program, grants were awarded and loans were extended during the year in the amounts of $165,423.92 and $517,872.85 respectively. The amount of revolving loan repayments and HUD CDBG funding received during the year totaled $279,179.40 and $708,907.70 respectively. Through the (HOME) program, grants were awarded and loans were extended during the year in the amounts of $181,215.09, and $270,000.00 respectively. The amount of revolving loan repayments and HUD HOME funding received during the year were $250,394.59 and $322,947.21 respectively.
Title: Note 4 - Program Costs
Accounting Policies: This schedule is prepared on the same basis of accounting as the City of Bellingham's financial statements. The City uses the accrual basis of accounting for proprietary funds and the modified accrual basis of
accounting for governmental funds.
De Minimis Rate Used: Y
Rate Explanation: The City has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
The amounts shown as current year expenditures represent only the federal assistance and associated program income funding, when applicable. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-87, Cost Principles for State, Local, and Indian Tribal 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.