Notes to SEFA
Title: 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 to reimbursement.
De Minimis Rate Used: N
Rate Explanation: Magnolia has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
The accompanying schedule of expenditures of federal awards (the “schedule”) includes the federal awards activity
of The Magnolia Manor of Macon Supportive Housing, Inc. (“Magnolia”) under programs of the federal government
for the year ended June 30, 2023. The information in the 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 Magnolia, it is not intended to and does not present the financial position, changes in
net assets or cash flows of Magnolia.
Title: Contingencies
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 to reimbursement.
De Minimis Rate Used: N
Rate Explanation: Magnolia has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Magnolia’s federal program is subject to financial and compliance audits by grantor agencies which, if instances of
material noncompliance are found, may result in disallowed expenditures and affect its continued participation in
specific programs. The amount, if any, of expenditures, which may be disallowed by the grantor agencies, cannot
be determined at this time. However, Magnolia expects such amounts, if any, to be immaterial.
Title: Loan Balances and Rental Assistance
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 to reimbursement.
De Minimis Rate Used: N
Rate Explanation: Magnolia has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Awards under Section 202 Supportive Housing for the Elderly include both capital advances and rental assistance.
Federal expenditures reported in the accompanying schedule include the outstanding principal balance on the
mortgage note payable at July 1, 2022 and tenant assistance payments received during the year ended June 30,
2023.
Title: Subrecipient Payments
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 to reimbursement.
De Minimis Rate Used: N
Rate Explanation: Magnolia has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
None of the expenditures reported on the schedule were passed through to subrecipients.