Notes to SEFA
Accounting Policies: 1. Scope of Audit Pursuant to Uniform Guidance The Schedule of Expenditures of Federal Awards (the Schedule) presents the activity of all federalaward programs of the Authority. All federal awards received directly from federal agencies as well asfederal awards passed through other governmental agencies or other entities are included in theSchedule. The Authority has elected not to use the 10 percent de minimis indirect cost rate allowedunder the Uniform Guidance. 2. Basis of Presentation The Authoritys Schedule of Expenditures of Federal Awards has been prepared using the same basis ofaccounting as the December 31, 2022 financial statements of the Authority. The Authority reports toHUD using the accrual basis of accounting. A complete description of the basis of accounting isincluded in Note 1 to those financial statements. 3. Contingencies In connection with various federal grant programs, the Authority is obligated to administer relatedprograms and spend the funds in accordance with regulatory restrictions, and is subject to audit bygrantor agencies and other auditors. In cases of noncompliance, the agencies involved may require theAuthority to refund program funds.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.