Notes to SEFA
Title: Note 1 – Basis of Presentation
Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal granting activity of
Kanesville Heights, Inc. HUD Project 074-EE038 (Kanesville) and is presented on the accrual basis of
accounting. 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. Therefore, some amounts presented in this schedule may
differ from amounts presented in or used in the preparation of the basic financial statements.
De Minimis Rate Used: N
Rate Explanation: Kanesville elected to not use the 10% de minimis indirect cost rate as covered in section 200.414 of the Uniform Guidance for Federal Awards. Instead of electing a 10% de minimis indirect cost rate, Kanesville
has a HUD-approved management agreement allowing a percent of defined gross revenues or per unit per month fee to cover administrative fees as set forth in the agreement.
The accompanying schedule of expenditures of federal awards includes the federal granting activity of Kanesville Heights, Inc. HUD Project 074-EE038 (Kanesville) and is presented on the accrual basis of accounting. 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. Therefore, some amounts presented in this schedule may
differ from amounts presented in or used in the preparation of the basic financial statements.
Title: Note 2 – Capital Advance and Loan Outstanding
Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal granting activity of
Kanesville Heights, Inc. HUD Project 074-EE038 (Kanesville) and is presented on the accrual basis of
accounting. 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. Therefore, some amounts presented in this schedule may
differ from amounts presented in or used in the preparation of the basic financial statements.
De Minimis Rate Used: N
Rate Explanation: Kanesville elected to not use the 10% de minimis indirect cost rate as covered in section 200.414 of the Uniform Guidance for Federal Awards. Instead of electing a 10% de minimis indirect cost rate, Kanesville
has a HUD-approved management agreement allowing a percent of defined gross revenues or per unit per month fee to cover administrative fees as set forth in the agreement.
The accompanying schedule of expenditures of federal awards includes capital advance and loan balance outstanding at July 1, 2024 of $2,366,800. During the year ended June 30, 2025, HOME Funds were forgiven in full. At June 30, 2025, the capital advance and loan balance outstanding is $2,312,100.
Title: Note 3 – De Minimis
Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal granting activity of
Kanesville Heights, Inc. HUD Project 074-EE038 (Kanesville) and is presented on the accrual basis of
accounting. 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. Therefore, some amounts presented in this schedule may
differ from amounts presented in or used in the preparation of the basic financial statements.
De Minimis Rate Used: N
Rate Explanation: Kanesville elected to not use the 10% de minimis indirect cost rate as covered in section 200.414 of the Uniform Guidance for Federal Awards. Instead of electing a 10% de minimis indirect cost rate, Kanesville
has a HUD-approved management agreement allowing a percent of defined gross revenues or per unit per month fee to cover administrative fees as set forth in the agreement.
Kanesville elected to not use the 10% de minimis indirect cost rate as covered in section 200.414 of the
Uniform Guidance for Federal Awards. Instead of electing a 10% de minimis indirect cost rate, Kanesville
has a HUD-approved management agreement allowing a percent of defined gross revenues or per unit
per month fee to cover administrative fees as set forth in the agreement.