Notes to SEFA
Title: U.S. Department of Housing and Urban Development Loan Program
Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal grant activity of Accessible Residences, Inc., HUD Project No. 113‐HD003 (Agency), 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). Because the Schedule presents only a selected portion of the operations of the Agency, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Agency.Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following 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 Agency has elected not to use the ten percent de minimis indirect cost rate allowed under Uniform Guidance.
The amounts reported as Federal expenditures for the Section 811 Capital Advance reflect the balance of net assets with donor restrictions received from HUD in prior years, as of the beginning of the year ended December 31, 2024. These funds are restricted as to use until August 4, 2037. The capital advance does not bear interest and does not need to be repaid as long as the housing remains available for disabled persons for at least 40 years. The capital advance was recorded as grant revenue with donor restrictions rather than loans payable in the financial statements in a prior year, as it is the Agency’s intention to provide housing as stipulated by HUD for a period of at least 40 years. Due to the ongoing requirements of the Section 811 Capital Advance agreement, the balance of net assets with donor restrictions did not change during the year ended December 31, 2024. The balance of net assets with donor restrictions as of December 31, 2024 was $1,220,200.