Notes to SEFA
Title: Basis of Presentation
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.
De Minimis Rate Used: N
Rate Explanation: Harmony Hills Apartments has elected not to use the 10 percent de minimis indirect cost rate as
allowed under the Uniform Guidance.
The accompanying schedule of expenditures of federal awards includes the federal award activity of
Regency Woods Apartments and is presented on the accrual basis of accounting. 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 Harmony Hills Apartments, it is not intended to and does not
present the financial position, changes in net assets, or cash flows of Harmony Hills Apartments.
Title: US Department of Housing and Urban Development Capital Advance Program
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.
De Minimis Rate Used: N
Rate Explanation: Harmony Hills Apartments has elected not to use the 10 percent de minimis indirect cost rate as
allowed under the Uniform Guidance.
Harmony Hills Apartments has received a U.S. Department of Housing and Urban Development
capital advance under Section 202 of the National Housing Act. The balance outstanding at the
beginning of the year is included in the federal expenditures presented in the schedule. Harmony Hills Apartments received no additional advances during the year.