Notes to SEFA
Title: Note 1 Basis of Accounting
Accounting Policies: The Schedule of Financial Assistance is prepared on the GAAP basis of accounting.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimus cost rate.
The Schedule of Expenditures of Federal Awards is prepared on the same basis of accounting as
HRHA's financial statements. HRHA complies with the basis of accounting required by HUD.
Title: Note 2 Major Programs
Accounting Policies: The Schedule of Financial Assistance is prepared on the GAAP basis of accounting.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimus cost rate.
The (*) to the right of an ALN identifies the grant as a major federal program as defined by Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards.
Title: Note 3 Award Balance
Accounting Policies: The Schedule of Financial Assistance is prepared on the GAAP basis of accounting.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimus cost rate.
In the Housing Choice Voucher Program, HRHA receives annual funds based on an annual estimate
of need. An adjustment is no longer made with HUD subsequent to closing the books to settle any
monies owed by or to HUD subsequent Notice PIH 2006-03. Unexpended grant funds are held as
restricted fund balances in accordance with GAAP, and are available to meet subsequent year HAP
shortfalls.
Title: Note 4 Program Costs
Accounting Policies: The Schedule of Financial Assistance is prepared on the GAAP basis of accounting.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimus cost rate.
The amounts shown as current year expenditures represent only the federal portion of the actual
program costs. Actual program costs, including HRHA's portion, may be more than shown.
Title: Note 5 Indirect Cost Allocation
Accounting Policies: The Schedule of Financial Assistance is prepared on the GAAP basis of accounting.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimus cost rate.
The Authority has not elected to use the 10-percent de minimus indirect cost rate as allowed under Uniform Guidance.