Notes to SEFA
Title: BASIS OF PRESENTATION
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Suchexpenditures are recognized following the cost principles contained in the UniformGuidance, wherein certain types of expenditures are not allowable or are limited as toreimbursement. The Corporation has elected not to use the 10-percent de minimis indirectcost rate allowed under the Uniform Guidance. There were no sub-recipients during the yearended June 30, 2022.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The accompanying schedule of expenditures of federal awards (the Schedule) includes thefederal grant activity of Germantown Home Section 811 Corporation, T/A The Cottages onthe Germantown Home Campus, HUD Property No. 034-HD068 under programs of thefederal government for the year ended June 30, 2022. The information in this Schedule ispresented in accordance with the requirements of the Title 2 U.S Code of FederalRegulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles andAudit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presentsonly a selected portion of the operations of Germantown Home Section 811 Corporation, T/AThe Cottages on the Germantown Home Campus, HUD Property No. 034-HD068, it is notintended to and does not present the financial position, changes in net assets or cash flows ofGermantown Home Section 811 Corporation, T/A The Cottages on the Germantown HomeCampus, HUD Property No. 034-HD068.
Title: U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD) CAPITAL ADVANCE
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Suchexpenditures are recognized following the cost principles contained in the UniformGuidance, wherein certain types of expenditures are not allowable or are limited as toreimbursement. The Corporation has elected not to use the 10-percent de minimis indirectcost rate allowed under the Uniform Guidance. There were no sub-recipients during the yearended June 30, 2022.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Corporation has received a HUD Capital Advance under Section 811 of the NationalAffordable Housing Act of 1990 (Capital Advances). The balance of the Capital Advances atthe beginning of the year is included in the federal expenditures presented in the Schedule.The Corporation received no additional capital advances during the year. The balance of theCapital Advances at June 30, 2022 consists of the HUD Section 811 Capital Advances in theamount of $2,328,800. The Corporation received $193,436 in project rental assistancepayments under a Project Rental Assistance Contract under the same CFDA number(14.181), which is separately presented on the Schedule.