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: Y
Rate Explanation: The Organization does not have a federally approved negotiated indirect cost-rate agreement and, therefore, is subject to the 10-percent de minimis indirect cost rate under the Uniform Guidance.
The accompanying schedule of expenditures of federal awards (the Schedule) includes federal grant activity of Shalom II Housing, Inc. (the Organization), HUD Project No. 016-EE-006, under programs of the federal government 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 Organization, it is not intended to and does not present the financial position, change in net assets, or the cash flows of the Organization.
Title: 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 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: Y
Rate Explanation: The Organization does not have a federally approved negotiated indirect cost-rate agreement and, therefore, is subject to the 10-percent de minimis indirect cost rate under the Uniform Guidance.
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.
Title: Indirect Cost Rate
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: Y
Rate Explanation: The Organization does not have a federally approved negotiated indirect cost-rate agreement and, therefore, is subject to the 10-percent de minimis indirect cost rate under the Uniform Guidance.
The Organization does not have a federally approved negotiated indirect cost-rate agreement and, therefore, is subject to the 10-percent de minimis indirect cost rate under the Uniform Guidance.
Title: Federal Programs
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: Y
Rate Explanation: The Organization does not have a federally approved negotiated indirect cost-rate agreement and, therefore, is subject to the 10-percent de minimis indirect cost rate under the Uniform Guidance.
The Organization received funding from the U.S. Department of Housing and Urban Development in both the current and prior years. The funding has been included in the accompanying schedule of expenditures of federal awards in consideration of the fact that the federal program from which the funding originates imposes continuing compliance requirements on the use of the properties acquired and rehabilitated for specified periods ranging from 10 to 40 years.