Notes to SEFA
Title: CDBG – Entitlement Grants Cluster
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. The Organization has elected to use the 10-percent de minimus indirect cost rate as allowed under the Uniform Guidance.
De Minimis Rate Used: Y
Rate Explanation: Did use de minimus cost rate
The Organization entered into a Community Development Block Grant funding agreement passed through Hillsborough County, Florida not to exceed $2,000,000 for the construction of an emergency shelter for homeless and at risk families and various improvements to existing offices on the Organization’s property. Pursuant to the funding agreement, a deferred payment mortgage (the mortgage) in the amount of $2,000,000
was executed between the Organization and Hillsborough County, Florida. The funding agreement includes provisions for the continued use of the improvements in a public facility benefiting homeless individuals and
families to the later of March 31, 2041 or 20 years from the completion of the project. The project was completed in June 2021. The Organization spent, and recognized as revenue, approximately $1,533,000 and $447,000 in fiscal years ending September 30, 2020 and 2021, respectively. There were no new costs incurred on this loan in fiscal years 2023 and 2024. The land use restrictions of the funding agreement and the mortgage provide for the optional right of Hillsborough County, Florida to collect on the mortgage in the event the Organization does not follow the terms of the agreement. Interest is not accrued during the deferment period of the mortgage. The balance of the mortgage is $1,979,773 at September 30, 2024. The Organization plans to follow the terms of the agreement.