Notes to SEFA
The accompanying Schedule of Expenditures of Federal Awards (the “SEFA”) includes the federal award activity of Apple Grove Homes II, Inc. (HUD Project No. 042-HD103) for the year ended June 30, 2025, and is presented in accordance with requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the SEFA presents only a selected portion of the operations of Apple Grove Homes II, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Apple Grove Homes II, Inc.
Expenditures reported on the SEFA are presented on the accrual basis of accounting. Federal awards are recognized as expended when the activity related to the federal award occurs, consistent with 2 CFR 200.502 (e.g., when eligible costs are incurred or other programmatic requirements are met). Non-cash assistance, if any, is valued at fair market value at the time of receipt or the value assigned by the federal agency. Apple Grove Homes II, Inc. has not elected to use the de minimis indirect cost rate allowed under 2 CFR 200.414.
Apple Grove Homes II, Inc. participates in the Supportive Housing for Persons with Disabilities (AL 14.181) program administered by the U.S. Department of Housing and Urban Development (HUD). The related capital advance is subject to continuing compliance requirements over the affordability/use period. In accordance with 2 CFR 200.502(b) and 2 CFR 200.510(b)(5), the SEFA is presented to reflect federal awards expended for this program, and the outstanding balance of the capital advance at June 30, 2025 was $746,500, which is disclosed here as required.