Notes to SEFA
Title: Note 1 - Basis of Presentation
Accounting Policies: Expenditures reported on the Schedule of Expenditures of Federal Awards are presented on the accrual basis of accounting. Such expenditures are recognized following the cost principals contained in OMBs Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Under federal cost principles, certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: The Organization has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance as it has a negotiated indirect cost rate.
The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Encore West Residence Housing Development Fund Corporation (the Organization) under programs of the federal government for the year ended June 30, 2022. 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 the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Organization.
Title: Note 3 - Sub-Recipients
Accounting Policies: Expenditures reported on the Schedule of Expenditures of Federal Awards are presented on the accrual basis of accounting. Such expenditures are recognized following the cost principals contained in OMBs Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Under federal cost principles, certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: The Organization has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance as it has a negotiated indirect cost rate.
There were no amounts provided to sub-recipients from federal awards received during the year ended June 30, 2022.
Title: Note 5 - Capital Advances
Accounting Policies: Expenditures reported on the Schedule of Expenditures of Federal Awards are presented on the accrual basis of accounting. Such expenditures are recognized following the cost principals contained in OMBs Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Under federal cost principles, certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: The Organization has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance as it has a negotiated indirect cost rate.
The Organization has received a HUD capital advance under Section 202 of the National Housing act. The capital advance at the beginning of the year is included in the federal expenditures presented in the Schedule of Expenditures of Federal Awards. The Organization received no additional loans or capital advances during the year. The balance of the capital advance outstanding at June 30, 2022 and 2021 was $13,262,100.