Notes to SEFA
The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of the Live the Dream Development, Inc. and subsidiary under programs of the federal government for the year ended December 31, 2024 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 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 Live the Dream Development, Inc. and subsidiary, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Live the Dream Development, Inc. and subsidiary.
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. Any negative amounts shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
Live the Dream Development, Inc. was approved by Warren County, Kentucky to receive a Community Development Block Grant from the Department of Housing and Urban Development. The loan totaled $1,000,000 and was used to construct 20 units of market rate housing, that must be rented to persons age 55 or older. These amounts do not require any principal or interest payments and are forgiven at a rate of 1/10th, per year, for ten years, after completion of the housing project. The debt forgiveness began January 2021 and the balance at year end is $600,000. The loan balance shown on the schedule is the beginning of year balance.
Live the Dream Development, Inc. has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.