Notes to SEFA
Title: Note 1 - 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 the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. No federal financial assistance has been provided to a subrecipient.
De Minimis Rate Used: N
Rate Explanation: The Authority has not elected to use the 10% de minimis cost rate and does not draw for indirect administrative expenses.
The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of Housing and Redevelopment Authority of Duluth, Minnesota (the Authority) under programs of the federal government for the year ended September 30, 2024. The information is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations 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 the Authority, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Authority.
The accompanying schedule of expenditures of federal awards does not include the federal grant activity of the blended component unit, North Pointe Apartments, LLC. These awards are reported in North Pointe Apartments’ standalone financial statements.
Title: Note 4 - Mortgage Insurance for the Purchase of Refinancing of Existing Multifamily Housing Projects (Section 223 (f))
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 the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. No federal financial assistance has been provided to a subrecipient.
De Minimis Rate Used: N
Rate Explanation: The Authority has not elected to use the 10% de minimis cost rate and does not draw for indirect administrative expenses.
Th Authority’s financial statements include a blended component unit that has a loan with continuing compliance requirements that are not subject to the Uniform Guidance, and therefore, not included in the Authority’s Schedule of Expenditures of Federal Awards. This program was audited in accordance with the HUD Audit Guide as part of the audit of the standalone financial statements of North Pointe Apartments, LLC, a blended component unit. The outstanding balance at the beginning of the year under the Mortgage Insurance for the Purchase of Refinancing of Existing Multifamily Housing Projects (Section 223 (f)) was $7,316,840.