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: N
Rate Explanation: VBCDC has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of the Virginia Beach Community Development Corporation and Subsidiaries (VBCDC) 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 VBCDC, it is not intended to and does not present the financial position, changes in net position, or cash flows of VBCDC.
Title: Coronavirus State and Local Fiscal Recovery Funds
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: N
Rate Explanation: VBCDC has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
The Companies received $163,946 of funds from the Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing 21.027) to assist with the rehabilitation of various apartment units. The Organization was listed as the beneficiary of the funds as they were not used to provide additional services on behalf of the passthrough entity. As such, these amounts have not been included on the Schedule.
Title: U.S. Department of Housing and Urban Development, Mortgage Insurance Program
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: N
Rate Explanation: VBCDC has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
The Companies have a mortgage insured under Section 223(f) Mortgage Insurance for the Refinancing of Existing Multifamily Housing Projects. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the schedule. The Companies did not receive additional loans during the year. The balance of the loan outstanding at the year ended June 30, 2024 consists of: AL Number 14.155, Program Name Multifamily rental property purchase or refinance - Section 223(f), Outstanding balance at June 30, 2024 $5,910,165