Notes to SEFA
Accounting Policies: Note A – Basis of Presentation
The accompanying schedule of expenditures of federal awards includes the federal award activity of Grit, Inc., FHA Project No. 034-11168, and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulation 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 Grit, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Grit, Inc.
Note B – Summary of Significant 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. Grit, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Note C – U.S. Department of Housing and Urban Development Loan Program
Grit, Inc. has received a loan under Section 223(f)/207 of the National Housing Act which is insured by the U.S. Department of Housing and Urban Development. The total loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. Grit, Inc. received no additional loans during the year. The loan balance outstanding at December 31, 2024 was $2,869,778.
De Minimis Rate Used: N
Rate Explanation: N/A