Notes to SEFA
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of ARC of Hawaii Housing Project Number 12, Incorporated (the Association) under programs of the federal government for the year 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 of Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Association, it is not intended to, and does not, present the financial position, changes in net assets, or cash flows of the Association.
The Association received $933,800 in capital advances from the Department of Housing and Urban Development for the acquisition and construction of three group homes in Ewa Beach, Hawaii. The capital advance agreement stipulates that these advances shall bear no interest and are not required to be repaid as long as the housing remains available to eligible very low-income persons with disabilities in accordance with Section 811 of the National Affordable Housing Act. The capital advance balance as of June 30, 2024, together with tenant assistance payments amounting to $96,853 for the year ended June 30, 2024, are included in the federal expenditures presented in the Schedule.