Notes to SEFA
Title: Note A - Basis of Presentation
Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting, which conforms to accounting principles generally accepted in the United States of America. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowed or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: I.O.O.F. Mason City Housing Corporation does not have indirect costs and therefore has elected not to use the 10% de minimis indirect rate as allowed under the Uniform Guidance.
The schedule of expenditures of federal awards (the schedule) includes the federal grant activity
of I.O.O.F. Mason City Housing Corporation 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 (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 I.O.O.F Mason City Housing Corporation, it is not intended to and does not present the financial position, changes in net assets, or cash flows of I.O.O.F Mason City Housing Corporation.
Title: Note D - Subrecipients
Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting, which conforms to accounting principles generally accepted in the United States of America. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowed or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: I.O.O.F. Mason City Housing Corporation does not have indirect costs and therefore has elected not to use the 10% de minimis indirect rate as allowed under the Uniform Guidance.
There were no awards passed through to subrecipients.
Title: Note E - Loans
Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting, which conforms to accounting principles generally accepted in the United States of America. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowed or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: I.O.O.F. Mason City Housing Corporation does not have indirect costs and therefore has elected not to use the 10% de minimis indirect rate as allowed under the Uniform Guidance.
The federal expenditure amount of $1,813,500 represents an outstanding mortgage note with the U.S. Department of Housing and Urban Development. The note is not required to be repaid so long as the housing units remain available for very low-income elderly persons in accordance with Section 202 of related Housing Act and HUD Regulatory Agreement.