Notes to SEFA
Expenditures reported in 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. Federal awards expended include the amount of new Federal loans made or received during the year, plus the beginning of the year balance of loans from previous years for which there are continuing compliance requirements, plus any interest subsidy, cash, or administrative cost allowance received. AGAPE II has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.
AGAPE II has received a U.S. Department of Housing and Urban Development capital advance under Section 811 of the Cranston-Gonzalez National Affordable Housing Act. Capital advances under Section 811 bear no interest and need not be repaid so long as the housing remains available for very low-income disabled persons for at least 40 years. There were no additional advances received during the year. The balance of the capital advance outstanding at January 1, 2024 was $778,900.