Notes to SEFA
Accounting Policies: □ The Housing Authority uses the fund types specified by the Governmental Accounting
Standards Board. Special revenue funds are used to account for resources restricted to, or
designated for, specific purposes. Federal and state financial assistance generally is accounted
for in a Special Revenue Fund because it is restricted for specific purposes.
□ The accounting and financial reporting treatment applied to a fund is determined by its
measurement focus. The Governmental Fund types are accounted for using a current financial
resources measurement focus called the modified accrual basis of accounting. Nearly all
Federal grant funds were accounted for in a Special Revenue Fund which is a Governmental
Fund type. With this measurement focus, only current assets and current liabilities and the fund
balance are included on the balance sheet. Operating statements of these funds present increases
and decreases in net current assets.
The modified accrual basis of accounting recognizes revenues in the accounting period in
which they become susceptible to accrual, i.e., both measurable and available, and expenditures
in the accounting period in which the fund liability is incurred, if measurable, except for
unmatured interest on General Long-Term Debt, which is recognized when due, and certain
compensated absences and claims and judgments, which are recognized when the obligations
are expected to be liquidated with expendable available financial resources.
Usually Federal grant funds are considered to be earned to the extent of expenditures made
under the provisions of the grant. When Federal grant funds are received before related
expenditures are made, they are recorded as deferred revenues.
□ The period of availability for federal grant funds for the purpose of liquidation of outstanding
obligations made on or before the ending date of the federal project period extends 30 days
beyond the federal project period ending date, in accordance with provisions in Section H,
Period of Availability of Federal Funds, Part 3, OMB Uniform Guidance Compliance
Statement.
□ The Housing Authority has elected not to use the 10-percent de minimus indirect cost rate
allowed under the Uniform Guidance.
□ The balance outstanding for CFDA 10.447 Multi-Family Housing Revitalization Demonstration
Program (MPR) Loan at the end of period is $862,400 after principal payments in the sum of
$30,793. As stated Note IV C of Notes to Financial Statements.
□ The balance outstanding for CFDA 10.405 Farm Labor Housing Loans and Grants loan at the
end of the period is $1,080,290 after principal payments in the sum of $51,656. As stated in
Note IV C of Notes to the Financial Statements.
De Minimis Rate Used: N
Rate Explanation: The Housing Authority has elected not to use the 10-percent de minimus indirect cost rate
allowed under the Uniform Guidance.