Notes to SEFA
Title: NOTE 1 – BASIS OF PRESENTATION
Accounting Policies: 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.
De Minimis Rate Used: N
Rate Explanation: The ten percent de minimis indirect cost rate is not applicable to the HUD funded loan and housing assistance program.
The accompanying Schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Pilgrim Towers, Inc. (the “Corporation”) 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 Agency, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Agency.
Title: NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Policies: 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.
De Minimis Rate Used: N
Rate Explanation: The ten percent de minimis indirect cost rate is not applicable to the HUD funded loan and housing assistance program.
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.
Title: NOTE 3 – FEDERALLY FUNDED LOANS
Accounting Policies: 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.
De Minimis Rate Used: N
Rate Explanation: The ten percent de minimis indirect cost rate is not applicable to the HUD funded loan and housing assistance program.
Federally funded loans reported on the Schedule include the amount of new loans funded during the year ended December 31, 2024, the beginning balances of loans from the previous year that have continuing compliance imposed by HUD and subsidized interest that has been accrued in accordance with the promissory notes, as applicable.
The ending principal balances of federally funded loans as of December 31, 2024 are as follows: Flexible Subsidy Loan (Section 201) January 1, 2024 - 489,563
Accrued interest for 2024 - 3,734
Flexible Subsidy Loan (Section 201) December 31, 2024 - 493,297
Community Development Block Grants/ Entitlement Grants - 1,630,446 Home Investment Partnerships Program - 800,000
Title: NOTE 4 – INDIRECT COST RATE
Accounting Policies: 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.
De Minimis Rate Used: N
Rate Explanation: The ten percent de minimis indirect cost rate is not applicable to the HUD funded loan and housing assistance program.
The ten percent de minimis indirect cost rate is not applicable to the HUD funded loan and housing assistance program.