Title: NOTE 1 - BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of DIMA IX, Inc., under programs of the federal government for the year ended February 28, 2025.
The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) 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 Project’s financial position, changes in net assets, or cash flows.
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.
Management did not elect to use the 15% de minimis indirect cost rate as allowed under the Uniform Guidance.
DIMA IX, Inc. executed obligations with the U.S. Department of Housing and Urban Development (HUD), totaling $864,700 at permanent closing. HUD requires annual audits performed in accordance with the cost principles contained in the Uniform Guidance since the capital advance amount exceeds the federal expenditure threshold of $750,000. This loan is subject to annual audit requirements under the Uniform Guidance because it has ongoing compliance requirements, even though loan proceeds were received and expended in prior years in connection with the Project's construction or rehabilitation.
De Minimis Rate Used: N
Rate Explanation: Management did not elect to use the 15% de minimis indirect cost rate as allowed under the Uniform Guidance.
The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of DIMA IX, Inc., under programs of the federal government for the year ended February 28, 2025.
The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) 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 Project’s financial position, changes in net assets, or cash flows.
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.
Management did not elect to use the 15% de minimis indirect cost rate as allowed under the Uniform Guidance.
DIMA IX, Inc. executed obligations with the U.S. Department of Housing and Urban Development (HUD), totaling $864,700 at permanent closing. HUD requires annual audits performed in accordance with the cost principles contained in the Uniform Guidance since the capital advance amount exceeds the federal expenditure threshold of $750,000. This loan is subject to annual audit requirements under the Uniform Guidance because it has ongoing compliance requirements, even though loan proceeds were received and expended in prior years in connection with the Project's construction or rehabilitation.
Title: NOTE 2 - CAPITAL ADVANCE - HUD:
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of DIMA IX, Inc., under programs of the federal government for the year ended February 28, 2025.
The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) 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 Project’s financial position, changes in net assets, or cash flows.
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.
Management did not elect to use the 15% de minimis indirect cost rate as allowed under the Uniform Guidance.
DIMA IX, Inc. executed obligations with the U.S. Department of Housing and Urban Development (HUD), totaling $864,700 at permanent closing. HUD requires annual audits performed in accordance with the cost principles contained in the Uniform Guidance since the capital advance amount exceeds the federal expenditure threshold of $750,000. This loan is subject to annual audit requirements under the Uniform Guidance because it has ongoing compliance requirements, even though loan proceeds were received and expended in prior years in connection with the Project's construction or rehabilitation.
De Minimis Rate Used: N
Rate Explanation: Management did not elect to use the 15% de minimis indirect cost rate as allowed under the Uniform Guidance.
HUD awarded DIMA IX, Inc. a mortgage of $864,700 under Section 811 of the National Affordable Housing Act for acquisition and rehabilitation of the Project. A mortgage modification agreement was entered into on May 16, 2002, which modified the maximum mortgage commitment to $864,700. The mortgage is deemed a contingent liability since no interest or principal payments are payable or due. The mortgage note does not become due unless HUD operating and filing requirements, as defined under Section 811 of the National Affordable Housing Act, are not met, in which case the entire mortgage balance becomes due, including interest accrued at 7.25% per annum. DIMA IX, Inc. must continue to operate the project under HUD guidelines until May 15, 2042, before the note will be forgiven.
Although the capital advance is fully forgivable if certain compliance requirements are met, the Project accounts for this obligation as debt in the financial statements. Because repayment is not expected to occur if the requirements are satisfied, no interest is imputed on the noninterest-bearing advance. The liability remains on the books until the conditions for forgiveness have been substantially met.
Title: NOTE 3 - RENTAL ASSISTANCE - HUD:
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of DIMA IX, Inc., under programs of the federal government for the year ended February 28, 2025.
The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) 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 Project’s financial position, changes in net assets, or cash flows.
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.
Management did not elect to use the 15% de minimis indirect cost rate as allowed under the Uniform Guidance.
DIMA IX, Inc. executed obligations with the U.S. Department of Housing and Urban Development (HUD), totaling $864,700 at permanent closing. HUD requires annual audits performed in accordance with the cost principles contained in the Uniform Guidance since the capital advance amount exceeds the federal expenditure threshold of $750,000. This loan is subject to annual audit requirements under the Uniform Guidance because it has ongoing compliance requirements, even though loan proceeds were received and expended in prior years in connection with the Project's construction or rehabilitation.
De Minimis Rate Used: N
Rate Explanation: Management did not elect to use the 15% de minimis indirect cost rate as allowed under the Uniform Guidance.
Subsidy revenue for eligible tenants is provided under a Section 8 housing assistance payment contract. This contract requires tenants to contribute a portion of the contract rent based on formulas prescribed by HUD. The difference from the calculated tenant rent and the contract rent is paid by HUD. The Project earned HUD Section 8 housing assistance payments of $28,545 in 2025.