Notes to SEFA
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of AuSable Valley Apartments, Inc., and is presented on the accrual basis of accounting. 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 AuSable Valley Apartments, Inc., it is not intended to and does not present the financial position, changes in net deficit or cash flows of AuSable Valley Apartments, Inc.
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. AuSable Valley Apartments, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under Uniform Guidance for awards executed on or before September 30, 2024 and also has not elected to use the 15-percent de minimis indirect cost rate allowed under Uniform Guidance for awards executed on or after October 1, 2024.
AuSable Valley Apartments, Inc. has received a U.S. Department of Housing and Urban Development direct loan under Section 207/223(f) of the National Housing Act. The loan balance at the beginning of the year is included in the federal expenditures presented in the Schedule. AuSable Valley Apartments, Inc. received no additional loans during the year. The balance of the loan consists of: