Notes to SEFA
Title: 3. LONG-TERM PAYABLE
Accounting Policies: 1. BASIS OF ACCOUNTING The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal awards activity of Continental Gardens Housing Corporation (the Project)under programs of the federal government for the year ended September 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 select portion of the operations of the Project, it is not intended to, and does not present, the financial position, changes in net assets, or cash flows of the Project. The Schedule has been prepared on the accrual basis of accounting which is the method of accounting used for the financial statements. 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
De Minimis Rate Used: N
Rate Explanation: The Project has elected not to use the 10-percent de minimus indirect cost rate allowed under Uniform Guidance.
The Project has a long-term capital advance note payable to the Department of Housing and Urban Development (HUD) in the amount of $3,366,400 as of September 30, 2024. No amounts are due on the note contingent upon the Project’s compliance with applicable HUD rules and regulations. The entire note balance is considered a federal award in the accompanying Schedule.