Notes to SEFA
Note 1. Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards (the "Schedule") includes the federal loan activity of Arkansas Methodist Medical Center Retirement Community, Inc. d/b/a Chateau on the Ridge, FHA Project Number 082-43058 (the "Chateau") under programs of the federal government for the year ended June 30, 2025. The information in this Schedule is presented in accordance with the 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 Schedule presents only a selected portion of the operations of the Chateau, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Chateau.
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. 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.
The Chateau has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
The federal loan program listed subsequently is administered directly by the Chateau, and balances and transactions relating to this program are included in the Chateau's basic financial statements. Loans outstanding at the beginning of the year and loans made during the year are included in the federal expenditures presented in the Schedule. The loan balance outstanding at June 30, 2025, consists of: Assisted Listing Number Program Name Outstanding Balance June 30, 2025 14.129 Mortgage Insurance Nursing Homes, Intermediate Care Facilities, Board and Care Homes, and Assisted Living Facilities (Section 232) $ 8,083,421