Notes to SEFA
Title: Note 3 - Mortage
Accounting Policies: The schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of 353-365
Housing Development Fund Company, Inc. HUD Project No. 012-11297 (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 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 Uniform
Guidance.
On March 31, 2023, the Company fully repaid its FHA Loan and refinanced with a conventional mortgage note.