Notes to SEFA
Title: NOTE C U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT LOAN PROGRAM
Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal award activity of King of Kings Housing Development Corporation II, Lula Haynes Plaza, HUD Project No. 121-EH109-NP-WAH-L8, 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 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 King of Kings Housing Development Corporation II, Lula Haynes Plaza, it is not intended to and does not present financial position, changes in net assets, or cash flows of King of Kings Housing Development Corporation II, Lula Haynes Plaza.
De Minimis Rate Used: N
Rate Explanation: 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. King of Kings Housing Development Corporation II, Lula Haynes Plaza has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
The Project has received an insured loan through HUD. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. The Project received no additional loans during the year. The balance of the Insured loan outstanding at March 31, 2023 consists of: CFDA Number 14.138, Program Name HUD Insured Mortgage Loan, Outstanding Balance at March 31, 2025 $898,602