Notes to SEFA
Title: 1. Scope of Audit Pursuant to Uniform Guidance
Accounting Policies: The Corporation’s Schedule of Expenditures of Federal Awards has been prepared using the
same basis of accounting as the December 31, 2024 financial statements of the Corporation. The
Corporation reports to HUD using the accrual basis of accounting. A complete description of the
basis of accounting is included in note 1 to those financial statements.
De Minimis Rate Used: N
Rate Explanation: The Corporation has elected not to use the 10 percent de minimis
indirect cost rate allowed under the Uniform Guidance.
The Schedule of Expenditures of Federal Awards (the Schedule) presents the activity of all
federal award programs of the Corporation. All federal awards received directly from federal
agencies as well as federal awards passed through other governmental agencies or other entities
are included in the Schedule. The Corporation has elected not to use the 10 percent de minimis
indirect cost rate allowed under the Uniform Guidance.
Title: 2. Basis of Presentation
Accounting Policies: The Corporation’s Schedule of Expenditures of Federal Awards has been prepared using the
same basis of accounting as the December 31, 2024 financial statements of the Corporation. The
Corporation reports to HUD using the accrual basis of accounting. A complete description of the
basis of accounting is included in note 1 to those financial statements.
De Minimis Rate Used: N
Rate Explanation: The Corporation has elected not to use the 10 percent de minimis
indirect cost rate allowed under the Uniform Guidance.
The Corporation’s Schedule of Expenditures of Federal Awards has been prepared using the
same basis of accounting as the December 31, 2024 financial statements of the Corporation. The
Corporation reports to HUD using the accrual basis of accounting. A complete description of the
basis of accounting is included in note 1 to those financial statements.
Title: 3. Contingencies
Accounting Policies: The Corporation’s Schedule of Expenditures of Federal Awards has been prepared using the
same basis of accounting as the December 31, 2024 financial statements of the Corporation. The
Corporation reports to HUD using the accrual basis of accounting. A complete description of the
basis of accounting is included in note 1 to those financial statements.
De Minimis Rate Used: N
Rate Explanation: The Corporation has elected not to use the 10 percent de minimis
indirect cost rate allowed under the Uniform Guidance.
In connection with various federal grant programs, the Corporation is obligated to administer
related programs and spend the funds in accordance with regulatory restrictions and is subject to
audit by grantor agencies and other auditors. In cases of noncompliance, the agencies involved
may require the Corporation to refund program funds.
Title: 4. Loan Balance
Accounting Policies: The Corporation’s Schedule of Expenditures of Federal Awards has been prepared using the
same basis of accounting as the December 31, 2024 financial statements of the Corporation. The
Corporation reports to HUD using the accrual basis of accounting. A complete description of the
basis of accounting is included in note 1 to those financial statements.
De Minimis Rate Used: N
Rate Explanation: The Corporation has elected not to use the 10 percent de minimis
indirect cost rate allowed under the Uniform Guidance.
The end of the year loan balance for the Section 202 Capital Advance loan was $1,339,800.