Notes to SEFA
Title: NOTE 1 - BASIS OF PRESENTATION
Accounting Policies: Expenditures reported in the schedule are reported on the accrual basis of accounting. When applicable, 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. No federal financial assistance has
been provided to a subrecipient. The Organization’s summary of significant accounting policies is presented in
Note 1 in the Organization’s basic financial statements.
De Minimis Rate Used: N
Rate Explanation: The Organization does not draw for indirect administrative expenses and has not elected to use the 10% de
minimus cost rate.
The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity
of The Hearthstone at Hover Crossing under programs of the federal government for the year ended December
31, 2024. The information 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 The
Hearthstone at Hover Crossing, it is not intended to and does not present the financial position, changes in net
deficit or cash flows of The Hearthstone at Hover Crossing.S
Title: NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Policies: Expenditures reported in the schedule are reported on the accrual basis of accounting. When applicable, 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. No federal financial assistance has
been provided to a subrecipient. The Organization’s summary of significant accounting policies is presented in
Note 1 in the Organization’s basic financial statements.
De Minimis Rate Used: N
Rate Explanation: The Organization does not draw for indirect administrative expenses and has not elected to use the 10% de
minimus cost rate.
Expenditures reported in the schedule are reported on the accrual basis of accounting. When applicable, 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. No federal financial assistance has
been provided to a subrecipient. The Organization’s summary of significant accounting policies is presented in
Note 1 in the Organization’s basic financial statements.
Title: NOTE 3 - INDIRECT COST RATE
Accounting Policies: Expenditures reported in the schedule are reported on the accrual basis of accounting. When applicable, 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. No federal financial assistance has
been provided to a subrecipient. The Organization’s summary of significant accounting policies is presented in
Note 1 in the Organization’s basic financial statements.
De Minimis Rate Used: N
Rate Explanation: The Organization does not draw for indirect administrative expenses and has not elected to use the 10% de
minimus cost rate.
The Organization does not draw for indirect administrative expenses and has not elected to use the 10% de
minimus cost rate.
Title: NOTE 4 - LOAN PROGRAM
Accounting Policies: Expenditures reported in the schedule are reported on the accrual basis of accounting. When applicable, 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. No federal financial assistance has
been provided to a subrecipient. The Organization’s summary of significant accounting policies is presented in
Note 1 in the Organization’s basic financial statements.
De Minimis Rate Used: N
Rate Explanation: The Organization does not draw for indirect administrative expenses and has not elected to use the 10% de
minimus cost rate.
Expenditures reported in this schedule consist of the beginning of the year outstanding loan balance plus
advances made on the loan during the year. The outstanding balance at December 31, 2024 was $6,802,700.