Notes to SEFA
Title: NOTE 1 – 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: Federation Homes, Inc. has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of Federation Homes, Inc., FHA Project No. 017-11085, 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 selected portion of the operations of Federation Homes, Inc., it is not intended to and does not present the financial position, statement of activities and changes in net deficit, or
cash flows of Federation Homes, Inc. For the year ended September 30, 2024, no awards were passed through to subrecipients.
Title: NOTE 4 – U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT LOAN 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: Federation Homes, Inc. has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
Federation Homes, Inc. has received mortgage insurance from the U.S. Department of Housing and Urban Development under Section 207 pursuant to Section 223(f) of the National Housing Act. The mortgage-backed outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. Federation Homes, Inc. received no additional proceeds during the year. The balance of the outstanding loan insured by HUD at September 30, 2024 consists of:
Assistance Living Outstanding Balance at Number Program Name September 30, 2024 14.134 Mortgage Insurance Rental Housing $ 3,741,694