Notes to SEFA
Title: Note 2 – Capital Advance and Loan Outstanding
Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal granting activity of Kanesville Heights, Inc. HUD Project 074-EE038 (Kanesville) 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 (CFR) Part 200, Uniform Administrative Requirements, Cost Principles,
and Audit Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements.
De Minimis Rate Used: N
Rate Explanation: Kanesville elected to not use the 10% de minimis indirect cost rate as covered in section 200.414 of the Uniform Guidance for Federal Awards. Instead of electing a 10% de minimis indirect cost rate, Kanesville
has a HUD-approved management agreement allowing a percent of defined gross revenues or per unit per month fee to cover administrative fees as set forth in the agreement.
The accompanying schedule of expenditures of federal awards includes capital advance and loan balance outstanding at July 01, 2022 of $2,366,800. During the year ended June 30, 2023, principal payments of $0 were paid on the capital advance and loan. At June 30, 2023, the capital advance and loan balance outstanding is $2,366,800.