Notes to SEFA
Title: Note A - Basis of Presentation
Accounting Policies: Full Accrual
De Minimis Rate Used: N
Rate Explanation: The nonprofit does use a deminimis cost rate as it uses a management fee concept
The accompanying schedule of expenditures of federal awards includes the federal award activity of Heritage
Square Apartments, Inc., HUD Project No. 082-EE072-NP-L8 and is presented on the accrual basis and in
conformity with generally accepted accounting principles accepted in the United States of America. 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 Heritage Square Apartments, Inc, it is not intended to and does not present the financial position, changes
in net assets, or cash flows of Heritage Square Apartments, Inc.
Title: Note B - Summary of Significant Accounting Policies
Accounting Policies: Full Accrual
De Minimis Rate Used: N
Rate Explanation: The nonprofit does use a deminimis cost rate as it uses a management fee concept
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. Heritage Square Apartments, Inc. has
elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: Note C – U.S. Department of Housing and Urban Development Loan Program
Accounting Policies: Full Accrual
De Minimis Rate Used: N
Rate Explanation: The nonprofit does use a deminimis cost rate as it uses a management fee concept
Heritage Square Apartments, Inc. has received a U.S. Department of Housing and Urban Development direct
loan under Section 202 of the National Housing Act. The loan balance outstanding at the beginning of the
year is included in the federal expenditures presented in the Schedule. Heritage Square Apartments, Inc.
received no additional loans during the year. The balance of the loan outstanding at December 31, 2024
consists of:
CFDA Number
Program Name
Outstanding Balance at
December 31, 2024
14.157 Section 202 Direct Loan $ 1,307,900