Notes to SEFA
Title: Note 1 – Basis of Presentation
Accounting Policies: Balances are pulled directly from two GL accounts specifically used to account for the insured financing and the rent subsidy received on an accrual basis. Management is very experienced in these areas, key personnel have not changed in several years and the methods are unchanged from the prior year.
De Minimis Rate Used: Y
Rate Explanation: de minimis
The accompanying schedule of expenditures of federal awards includes the federal grant activity of Multi-Ethnic East Housing Corporation, HUD Project No. 105-11046, 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 Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Management has elected to use the 10% de Minimis indirect cost rate for certain costs.
Title: Note 2 – Loans Outstanding
Accounting Policies: Balances are pulled directly from two GL accounts specifically used to account for the insured financing and the rent subsidy received on an accrual basis. Management is very experienced in these areas, key personnel have not changed in several years and the methods are unchanged from the prior year.
De Minimis Rate Used: Y
Rate Explanation: de minimis
Multi-Ethnic East Housing Corporation, had the following loan balances outstanding at June 30, 2024: Section 223(f) insured Loan by the Department of Housing and Urban Development in the amount of $2,760,735. (See Note 4 – Mortgage Payable) The loan balance outstanding is included in the federal expenditures presented in the schedule. Per Title 2 U.S. Code of Federal Awards paragraph 200.502 (Uniform Guidance), for loan guarantee programs the amount of federal awards expended based on the beginning of the period balance of loans from previous years for which the Federal government imposes continuing compliance requirements. So, the amount of federal awards expended for the loan guarantee program listed in this schedule will differ from the balance reflected on the balance sheet by the amount of principal paid during the reporting period. The outstanding loan balance at period end is $2,681,063. No matters were reported for the prior audit period.