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 Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: Leisure Acres Phase II Housing Corporation has not elected 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 Leisure Acres Phase II Housing 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 2 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 Leisure Acres Phase II Housing Corporation, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Leisure Acres Phase II Housing Corporation
Title: NONMONETARY ASSISTANCE
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 Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: Leisure Acres Phase II Housing Corporation has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.
At the beginning of the year, the mortgage note payable was $4,885,552. After the current year payments, the mortgage note payable, in the amount of $4,758,121, to P/R Mortgage & Investment Corp., is guaranteed by the U.S. Department of Housing and Urban Development and secured by the housing project.
The Corporation did not receive any federal awards in the form of noncash assistance for insurance in effect during the year. In addition, the Corporation did not pass through any federal grants to subrecipients.