Notes to SEFA
Accounting Policies: 1. Scope of Audit Pursuant to Uniform GuidanceThe Schedule of Expenditures of Federal Awards (the Schedule) presents the activity of all federal awardprograms of the Organization. All federal awards received directly from federal agencies as well as federalawards passed through other governmental agencies or other entities are included in the Schedule. TheOrganization has elected not to use the 10 percent de minimis indirect cost rate allowed under the UniformGuidance.2. Basis of PresentationThe Organizations Schedule of Expenditures of Federal Awards has been prepared using the same basis ofaccounting as the December 31, 2022 financial statements of the Organization. The Organization reports to HUDusing the accrual basis of accounting. A complete description of the basis of accounting is included in note 1 tothose financial statements.3. ContingenciesIn connection with various federal grant programs, the Organization is obligated to administer related programsand spend the funds in accordance with regulatory restrictions, and is subject to audit by grantor agencies andother auditors. In cases of noncompliance, the agencies involved may require the Organization to refund programfunds.4. Federally Funded and Insured LoansThe loan balance at the beginning of the year and loans made during the year are included in the federalexpenditures presented in the Schedule. The balance of the outstanding federally insured loans at December 31,2022 is $4,053,517.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.