Notes to SEFA
Title: Note 3 - Mortage
Accounting Policies: The schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of
Crotona Estates Housing Development Fund Company, Inc., HUD Project No. 012-11386 (the “Company”),
and is presented on the accrual basis of accounting, following the cost principles contained in the Uniform
Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The
information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of
Federal Regulations (CFR) 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 the Company, it is not intended to and does not present the financial position,
changes in net assets or cash flows of the Company.
De Minimis Rate Used: N
Rate Explanation: The Company has elected not to use the 10 percent de minimis indirect cost rate as allowed under the
Uniform Guidance.
The Company has a loan guaranteed by HUD, and the outstanding balance of the loan at April 30, 2023 is
$10,261,684. The loan balance outstanding at the beginning of the year is included in the federal
expenditures presented in the Schedule.