Notes to SEFA
Title: BASIS OF PRESENTATION
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, and the cost principles contained in the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: Veranda Breeze Phase II 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 includes the federal award activity of Veranda Breeze Phase II, 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 Veranda Breeze Phase II, it is not intended to and does not present the financial position, changes in net assets (deficit), or cash flows of Veranda Breeze Phase II.
Title: LOAN PROGRAM
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, and the cost principles contained in the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: Veranda Breeze Phase II has elected not to use the 10 percent de minimus indirect cost rate as allowed under the Uniform Guidance.
Veranda Breeze Phase II received an indirect loan from the U.S. Department of Housing and Urban Development through its HOME Investment Partnerships Program. The loan balances outstanding at the beginning of the year, plus any current year advances, are included in the federal expenditures presented in the accompanying schedule of expenditures of federal awards. The balance of the loan outstanding at December 31, 2024 was $2,538,000.