Title: Note 1 - Basis of presentation
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such
expenditures are recognized following, as applicable, 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: The auditee did not use the de minimus cost rate.
The accompanying schedule of expenditures of federal awards ("Schedule") includes the federal
award activity of Mt. Zion Land Development Corporation II and Subsidiary, HUD Project No. 075-
11348, under programs of the federal government for the year ended December 31, 2021. 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 Mt. Zion Land Development Corporation II and Subsidiary, it is
not intended to and does not present the financial position, changes in net assets, or cash flows of
Mt. Zion Land Development Corporation II and Subsidiary. For the year ended December 31, 2021,
no awards were passed through to subrecipients.
Title: Note 2 - Summary of significant accounting policies
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such
expenditures are recognized following, as applicable, 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: The auditee did not use the de minimus cost rate.
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such
expenditures are recognized following, as applicable, the cost principles contained in the Uniform
Guidance, wherein certain types of expenditures are not allowable or are limited as to
reimbursement.
Title: Note 3 - Indirect cost rate
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such
expenditures are recognized following, as applicable, 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: The auditee did not use the de minimus cost rate.
Mt. Zion Land Development Corporation II and Subsidiary, has not elected to use the 10-percent de
minimis indirect cost rate allowed under the Uniform Guidance.
Title: Note 4 - U.S. Department of Housing and Urban Development loan program
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such
expenditures are recognized following, as applicable, 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: The auditee did not use the de minimus cost rate.
Mt. Zion Land Development Corporation II and Subsidiary, has received a U.S. Department of
Housing and Urban Development direct loan under Section 207 pursuant to Section 223(f) of the
National Affordable Housing Act. The value of the new HUD-insured loan received during the year
ended December 31, 2021 is included in the federal expenditures presented in the Schedule. Mt.
Zion Land Development Corporation II and Subsidiary received no additional loans during the year.
The balance of the loan outstanding at December 31, 2021 consists of: See the Notes to the SEFA for chart/table