Notes to SEFA
Title: General Information
Accounting Policies: The accompanying Schedule is presented using the accrual basis of accounting. The amounts reported in this Schedule may differ from certain financial reports submitted to federal funding agencies due to those reports being submitted on either a cash or modified accrual basis of accounting.
De Minimis Rate Used: N
Rate Explanation: The Project has not made an election to use the 10% de minimis cost rate allowed under the Uniform Guidance. Furthermore, the Project does not have a negotiated federal indirect cost rate.
The accompanying schedule of expenditures of federal awards (the “Schedule”) presents the activities in all the federal financial assistance programs of Community Options Properties, Inc., HUD Project No. 035-HD-013-WDD (the “Project”) for the year ended June 30, 2024. 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 the Project, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Project. There was no pass-through entities for the year ended June 30, 2024.
Title: RELATIONSHIP TO BASIC FINANCIAL STATEMENTS
Accounting Policies: The accompanying Schedule is presented using the accrual basis of accounting. The amounts reported in this Schedule may differ from certain financial reports submitted to federal funding agencies due to those reports being submitted on either a cash or modified accrual basis of accounting.
De Minimis Rate Used: N
Rate Explanation: The Project has not made an election to use the 10% de minimis cost rate allowed under the Uniform Guidance. Furthermore, the Project does not have a negotiated federal indirect cost rate.
Federal awards expenditures are reported on the statements of activities as program and administrative expenses. In certain programs, the expenditures reported in the basic financial statements may differ from the expenditures reported in the schedule of expenditures of federal awards due to program and administrative expenditures exceeding grant or contract budget limitations, revenues earned, or capitalization policies required by accounting principles generally accepted in the United States of America which are not included as federal awards.
Title: NON-CASH EXPENDITURES
Accounting Policies: The accompanying Schedule is presented using the accrual basis of accounting. The amounts reported in this Schedule may differ from certain financial reports submitted to federal funding agencies due to those reports being submitted on either a cash or modified accrual basis of accounting.
De Minimis Rate Used: N
Rate Explanation: The Project has not made an election to use the 10% de minimis cost rate allowed under the Uniform Guidance. Furthermore, the Project does not have a negotiated federal indirect cost rate.
The Project was financed by a capital advance from HUD in the amount of $737,768. The advance is secured by an enforcement mortgage on the property. The mortgage, which matures in March 2036, bears no interest, and repayment is not required so long as the housing remains available to eligible low-income persons. There was no change in the capital advance from June 30, 2023 to June 30, 2024.