Notes to SEFA
Accounting Policies: Note - Basis of Presentation:
The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of Magnolia Tree Apartments. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) 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 Magnolia Tree Apartments, it is not intended to, and does not, present the financial position, changes in net assets or cash flows of Magnolia Tree Apartments.
Note - Summary of Significant Accounting Policies:
Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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.
Note – Indirect Cost Rate
The Organization has elected not to use the 10 percent de Minimis indirect cost rate allowed under the Uniform Guidance.
Note – Federally Funded Grant:
The capital grant balance at the beginning of the year is included in the federal expenditures presented in this schedule. The balance of the outstanding federal mortgage at June 30, 2024, is $1,888,400.
De Minimis Rate Used: N
Rate Explanation: The Organization has elected not to use the 10 percent de Minimis indirect cost rate allowed under the Uniform Guidance.