Notes to SEFA
Title: GENERAL INFORMATION
Accounting Policies: Expenditures reported on the Schedule are presented using 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. The amounts reported in this schedule as expenditures may differ from certain financial reports submitted to federal funding agencies due to those reports being submitted on either a cash or modified accrual basis of accounting.
De Minimis Rate Used: N
Rate Explanation: The Organization has not made an election pursuant to Uniform Guidance to use the 10% de minimis indirect cost rate. Furthermore, the Organization does not have a negotiated federal indirect cost rate.
The accompanying schedule of expenditures of federal awards (the “Schedule”) presents the activities in all the federal financial assistance programs of Penn Gardens, Inc., HUD Project No. 034-EH387 (the “Organization”) 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 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 Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization.
Title: RELATIONSHIP TO BASIC FINANCIAL STATEMENTS
Accounting Policies: Expenditures reported on the Schedule are presented using 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. The amounts reported in this schedule as expenditures may differ from certain financial reports submitted to federal funding agencies due to those reports being submitted on either a cash or modified accrual basis of accounting.
De Minimis Rate Used: N
Rate Explanation: The Organization has not made an election pursuant to Uniform Guidance to use the 10% de minimis indirect cost rate. Furthermore, the Organization does not have a negotiated federal indirect cost rate.
Federal awards expenditures are reported on the statements of activities as program services and management and general expenses. In certain programs, the expenditures reported in the basic financial statements may differ from the expenditures reported in the Schedule due to program and administrative expenditures exceeding grant or contract budget limitations, revenues earned or capitalization policies required by accounting principles generally accepted in the United States of America which are not included
as federal awards.
Title: U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT LOAN PROGRAM
Accounting Policies: Expenditures reported on the Schedule are presented using 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. The amounts reported in this schedule as expenditures may differ from certain financial reports submitted to federal funding agencies due to those reports being submitted on either a cash or modified accrual basis of accounting.
De Minimis Rate Used: N
Rate Explanation: The Organization has not made an election pursuant to Uniform Guidance to use the 10% de minimis indirect cost rate. Furthermore, the Organization does not have a negotiated federal indirect cost rate.
The Organization received a U.S. Department of Housing and Urban Development direct loan under Section 202 of the National Housing Act. The loan balance included as federal expenditures is the balance as of January 1, 2023. Penn Gardens, Inc. has received no additional loans during the year.