Notes to SEFA
Title: NOTE 1 - BASIS OF PRESENTATION
Accounting Policies: NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Expenditures reported on the schedule are reported on the accrual basis of accounting. Such
expenditures are recognized following the cost principles contained in OMB Circular A-122,
Cost Principles for Non-profit Organizations, wherein certain types of expenditures are not
allowable or are limited as to reimbursement.
Sunset Hills Apartments, Inc. has elected not to use the 10 percent de minimus indirect cost
rate as allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: Sunset Hills Apartments, Inc. has elected not to use the 10 percent de minimus indirect cost
rate as allowed under the Uniform Guidance.
The accompanying schedule of expenditures of federal awards (the Schedule) includes the
federal grant activity of Sunset Hills Apartments, Inc., HUD Project No. 114-35664, and is
presented on the accrual basis of accounting. The information in the 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 Sunset Hills Apartments, Inc., it is not intended to and does not present
the financial position, changes in net assets, or cash flows of Sunset Hills Apartments, Inc.
Title: NOTE 3 - MORTGAGE NOTE PAYABLE
Accounting Policies: NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Expenditures reported on the schedule are reported on the accrual basis of accounting. Such
expenditures are recognized following the cost principles contained in OMB Circular A-122,
Cost Principles for Non-profit Organizations, wherein certain types of expenditures are not
allowable or are limited as to reimbursement.
Sunset Hills Apartments, Inc. has elected not to use the 10 percent de minimus indirect cost
rate as allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: Sunset Hills Apartments, Inc. has elected not to use the 10 percent de minimus indirect cost
rate as allowed under the Uniform Guidance.
The outstanding balance of the 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 as follows: CFDA Balance at
Number 12/31/2024
14.135 $ 406,994
14.164 $779,479
14.197 $81,291
$1,267,764
Mortgage restructure note
Grant Name
Section 221 (d)(3) mortgage
Flexible subsidy loan