Notes to SEFA
Title: Contingency
Accounting Policies: Note 1 Basis of PresentationThe accompanying schedule of expenditures of federal awards includes the federal grant activities of St.Patricks Housing Corporation II (the Organization), HUD Project No. 067-EE152. The information inthis schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal RegulationsPart 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for FederalAwards (Uniform Guidance). Because the schedule presents only a selected portion of the operations ofthe Organization, it is not intended to and does not present the financial position, changes in net assets, orcash flows of the Organization.Note 2 Summary of Significant Accounting PoliciesExpenditures reported on the schedule are reported on the accrual basis of accounting. Such expendituresare recognized following the cost principles contained in the Uniform Guidance, wherein certain types ofexpenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Note 4 ContingencyExpenditures incurred by the Organization are subject to audit and possible disallowance by federalagencies. Management believes that, if audited, an adjustment for disallowed expenses would beimmaterial.