Notes to SEFA
Title: Loan/loan guarantee outstanding balances
Accounting Policies: BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of Urban Partnerships Community Development Corporation and Affiliates under programs of the federal government for the year ended December 31, 2022. 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"). Because the Schedule presents only a selected portion of the operations of Urban Partnerships Community Development Corporation and Affiliates, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Urban Partnerships Community Development Corporation and Affiliates. 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.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
COMMUNITY DEVELOPMENT BLOCK GRANTS/STATE'S PROGRAM AND NON-ENTITLEMENT GRANTS IN HAWAII (14.228) n July 9, 2020, Urban Partnerships Community Development Corporation and Affiliates executed a promissory note with Harris County in the original amount of $13,571,654. There were draws in the amount of $637,060 on the note during 2022. As of December 31, 2022, the outstanding promissory note balance was $12,480,544, secured by a second lien on land, fixture filing, and second assignment of leases and rents. The activity of the loan during the year ended December 31, 2022 is as follows: Balance, January 1, 2022 $ 11,843,484 Advances during 2022 637,060 Balance, December 31, 2022 $ 12,480,544