Notes to SEFA
Accounting Policies: NOTE A BASIS OF PRESENTATIONThe accompanying schedule of expenditures of federal awards includes the federal award activity of ForesightAffordable Housing-Pennsville, Inc., HUD Project NO. 035-EH016, and is presented on the accrual basis ofaccounting. The information in this schedule is presented in accordance with he requirements of Title 2 U.S. Codeof Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirementsfor Federal Awards (uniform Guidance). Because the Schedule presents only a selected portion of the operationsof Foresight Affordable Housing-Pennsville, Inc., it is not intended to and does not present the financial position,changes in net assets, or cash flows of Foresight Affordable Housing-Pennsville, Inc.NOTE B SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures arerecognized following the cost principles contained in the Uniform Guidance, wherein certain types of expendituresare not allowable or are limited as to reimbursement. Foresight Affordable Housing-Pennsville, Inc. has electednot to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.NOTE C U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT LOAN PROGRAMForesight Affordable Housing-Pennsville, Inc. had received a U.S. Department of Housing and UrbanDevelopment direct loan under Section 202 of the National Housing Act. This loan was refinanced and satisfiedon August 29, 2022 with conventional mortgage financing.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.