Notes to SEFA
Title: Section 223(f) HUD Insured Loan
Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of LH Homes II, Inc. under programs of the federal government for the year ended September 30, 2022. 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 LH Homes II, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of LH Homes II, Inc.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Assistance listing number 14.181 has a capital advance of $1,195,095 at September 30, 2022 from a Section 223(f) Federal Housing Administration Insured Loan issued during the period ending September 30, 2008. This is recorded as a capital advance and net assets with donor restrictions on the statement of financial position.