Notes to SEFA
Title: Capital Advances
Accounting Policies: The schedule of expenditures of federal awards 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 (CPR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).
De Minimis Rate Used: N
Rate Explanation: Indirect costs are included in the reported expenditures to the extent that such costs are included in the Federal financial reports used as the source for the data presented. The de minimis election allows the Company to allocate 10% of the indirect costs to grants with periods ending on or before September 30, 2024 and 15% of indirect costs to grants with periods after September 30, 2024. The Company does not use the de minimis election.
The Company has received a Section 202 capital advance from the U.S. Department of Housing and Urban Development's Supportive Housing for the Elderly program (CFDA No. 14.157). Under the terms of the capital advance agreement, the Company must continue to operate the residence for the specified purpose for a period of forty years. Failure to operate the project in accordance with the capital advance agreement would result in the Company being required to repay HUD the entire capital advance, plus interest, since the date of the first advance.