Notes to SEFA
Title: NOTE A - 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 Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: Y
Rate Explanation: The Arc has elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
The accompanying Consolidated Schedule of Expenditures of Federal Awards includes the federal grant activity of The Arc of Cape May County, Inc. and Affiliate and is presented on the accrual basis of accounting. 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 Arc of Cape May County, Inc. and Affiliate, it is not intended to and does not present the financial position, changes in net assets, or cash flows of The Arc of Cape May County, Inc. and Affiliate.
Title: NOTE C - US DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT LOAN AND
MORTGAGE
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 Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: Y
Rate Explanation: The Arc has elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
The Arc has a loan and mortgage with the United States Department of Housing and Urban Development. Balances and transactions relating to these programs are included in these consolidated financial statements. The outstanding balance of the loan and mortgage at the beginning of the year are included in the schedule of expenditures of federal awards. The balance of the loan and mortgage outstanding at June 30, 2024 is as follows: