Notes to SEFA
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Mental Health Services of Snohomish County II (the Organization) 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 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 Organization, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Organization.
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. The Organization has not elected to use the de minimis indirect rate allowed under the Uniform Guidance as the Schedule only includes a loan and project rental assistance, which are not subject to indirect cost recoveries.
In accordance with the Uniform Guidance, included in the Schedule is a Section 202 loan payable to the U.S. Department of Housing and Urban Development (HUD) with loan proceeds being received in prior years. The loan’s HUD Regulatory Agreement contains continuing use requirements which restrict use of the property to provide housing to individuals who have very low income and who have disabilities or who are elderly, as defined by HUD. These continuing use requirements expire in May 2032 with maturity of the loan. The outstanding balance of the Section 202 loan was $494,097 as of June 30, 2025.