Notes to SEFA
Title: Note 4 - U.S. Department of Housing and Urban Development (HUD) Section 232 Mortgage Loan
Accounting Policies: Note 1 - Basis of Presentation
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of the Company under programs of the federal government for the seven month period ended June 30, 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 Company, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Company.
Note 2 - Summary of Significant 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. No federal financial assistance has been provided to a subrecipient.
De Minimis Rate Used: N
Rate Explanation: Note 3 - Indirect Cost Rate
The Company does not draw for indirect administrative expenses and has not elected to use the 10-percent de minimus indirect cost rate.
The HUD Section 232 healthcare facility note, listed subsequently, is administered directly by the Company, and the balance and transactions relating to the mortgage note are included in the Company’s financial statements. The mortgage note outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. The balance of the loan outstanding at June 30, 2024 consists of: See "Notes to SEFA" for chart/table.