Notes to SEFA
Scope of Audit Pursuant to Uniform Guidance The schedule of expenditures of federal awards includes the federal award activity of the Company. 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 Company, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Company.
Basis of Presentation 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 Company has elected not to use the 10 percent de-minimis indirect cost rate allowed under the Uniform Guidance.
Loan Balances and Advances The Company received loans directly or indirectly from the U.S. Department of Housing and Urban Development. The end of the year loan balance for the City of Providence and RIHousing loan were $500,000 and $850,000, respectively.
Grants Certain grants, while fully expended, contain continuing compliance requirements and are thus included in the Schedule.