Notes to SEFA
Title: Basis of Presentation
Accounting Policies: (a) 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.
(b) The Corporation has elected not to use the 10 percent de minimis indirect cost rate as allowed
under the Uniform Guidance.
(c) The outstanding balance of loan and loan guarantee programs at December 31, 2024 with
continuing compliance requirements which are reported as federal expenditures on the
accompanying schedule of expenditures of federal awards was $2,956,900.
(d) The Section 202 Capital Advance is reported as donor-imposed restricted net assets as of
December 31, 2024.
De Minimis Rate Used: N
Rate Explanation: (b) The Corporation has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal
award activity of Second Baptist Housing Association II, Inc. (the Corporation) under programs of
the federal government for the year ended December 31, 2024.
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 portion of the Corporation, it is not intended to and does not present the
Corporation’s financial position, changes in net assets or cash flows.