Notes to SEFA
The accompanying schedule of expenditures of federal awards includes the federal grant activity of Cane Manor, Inc. HUD Project No. 064-HD124 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 200.502, 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 Cane Manor, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Cane Manor, 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. Cane Manor, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The capital advance above is a contingent liability recognized as a long-term liability in the year of construction of the apartment complex. In the event the Project does not remain available for eligible low-income households for a 40-year period, in compliance with the capital advance agreement, HUD may declare the entire amount due and payable. No additional advances were received during the year. The balance outstanding at June 30, 2024 is $1,579,550.