Notes to SEFA
Title: Note 2 Continued
Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Magnolia Heights Housing Corporation – U.S. Department of Housing and Urban Development (HUD) Project No. 084-HD051 (the “Project”) under programs of the federal government for the year ended March 31, 2025. 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 the Project, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Project.
De Minimis Rate Used: N
Rate Explanation: Magnolia Heights Housing Corporation – U.S. Department of Housing and Urban Development (HUD) Project No. 084-HD051 (the “Project”) has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.
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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
Title: Note 3
Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Magnolia Heights Housing Corporation – U.S. Department of Housing and Urban Development (HUD) Project No. 084-HD051 (the “Project”) under programs of the federal government for the year ended March 31, 2025. 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 the Project, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Project.
De Minimis Rate Used: N
Rate Explanation: Magnolia Heights Housing Corporation – U.S. Department of Housing and Urban Development (HUD) Project No. 084-HD051 (the “Project”) has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.
Magnolia Heights Housing Corporation – U.S. Department of Housing and Urban Development (HUD) Project No. 084-HD051 (the “Project”) did not have a balance outstanding due to any federal loan programs included in the Project’s basic financial statements at March 31, 2025. The Project’s mortgage note with HUD through the Supportive Housing for Persons with Disabilities Program was recorded as a contribution from HUD due to the terms described in the notes to the financial statements.