Notes to SEFA
Title: Federal Loan Program
Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award
activity of the Project under programs of the federal government for the year ended June 30, 2024. The
information in the 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”). Therefore, some amounts presented in this schedule may differ from
amounts presented in, or used in the preparation of, the basic financial statements. Because the Schedule
presents only a selected portion of the operations of the Project, it is not intended to and does not present the
financial position, changes in net assets or cash flows of the Project. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are
recognized following, as applicable, either the cost principles contained in OMB A-122 or 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: Heritage Manors of Southeast Arkansas, Inc. has elected not to use the 10 percent de
minimis indirect cost rate as allowed under the Uniform Guidance.
The federal loan program listed subsequently is administered directly by Heritage Manors of Southeast Arkansas, Inc., and balances and transactions relating to this program are included in Heritage Manors of Southeast Arkansas, Inc.’s basic financial statements. The loan outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. The balance of the loan outstanding at June 30, 2024, consists of: