Notes to SEFA
The accompanying schedule of expenditures of federal awards includes the federal grant activity of Sapphire Homes, Inc. and 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. Therefore, amounts presented in this schedule differ from amounts presented in, or used in, the preparation of the financial statements. In accordance with Uniform Administrative requirements, the federal expenditures in the amount of $824,404 represents the outstanding balance of the Rural Rental Housing Loan as of January 1, 2024 in the amount of $709,683 plus the USDA rental assistance payments in the amount of $56,267 plus subsidized loan interest in the amount of $58,454 during 2024.
The Rural Rental Housing Loan is payable in monthly installments of $1,847, at an interest rate of 9.75% and a term of 50 years, maturing in the year 2041. As part of the Loan Agreement, Sapphire Homes, Inc. entered into an Interest Credit Rental Assistance Agreement that reduces the monthly mortgage payments to $330 which effectively lowers the interest rate to approximately 1% over the term of the loan. The 2024 interest subsidy was $58,454. The balance of the Rural Rental Housing Loan as of December 31, 2024 was $692,669.
The Organization has elected not to use the de minimis ten percent indirect cost rate.
Of the federal expenditures presented in the schedule, the Organization provided no federal awards to sub-recipients.