Notes to SEFA
Title: Loan/loan guarantee outstanding balances
Accounting Policies: The Housing Authority uses the fund types specified by the Governmental AccountingStandards Board. Special revenue funds are used to account for resources restricted to, ordesignated for, specific purposes. Federal and state financial assistance generally is accountedfor in a Special Revenue Fund because it is restricted for specific purposes.? The accounting and financial reporting treatment applied to a fund is determined by itsmeasurement focus. The Governmental Fund types are accounted for using a current financialresources measurement focus called the modified accrual basis of accounting. Nearly allFederal grant funds were accounted for in a Special Revenue Fund which is a GovernmentalFund type. With this measurement focus, only current assets and current liabilities and the fundbalance are included on the balance sheet. Operating statements of these funds present increasesand decreases in net current assets.The modified accrual basis of accounting recognizes revenues in the accounting period inwhich they become susceptible to accrual, i.e., both measurable and available, and expendituresin the accounting period in which the fund liability is incurred, if measurable, except forunmatured interest on General Long-Term Debt, which is recognized when due, and certaincompensated absences and claims and judgments, which are recognized when the obligationsare expected to be liquidated with expendable available financial resources.Usually Federal grant funds are considered to be earned to the extent of expenditures madeunder the provisions of the grant. When Federal grant funds are received before relatedexpenditures are made, they are recorded as deferred revenues.? The period of availability for federal grant funds for the purpose of liquidation of outstandingobligations made on or before the ending date of the federal project period extends 30 daysbeyond the federal project period ending date, in accordance with provisions in Section H,Period of Availability of Federal Funds, Part 3, OMB Uniform Guidance ComplianceStatement.? The Housing Authority has elected not to use the 10-percent de minimus indirect cost rateallowed under the Uniform Guidance.? The balance outstanding for CFDA 10.447 Multi-Family Housing Revitalization DemonstrationProgram (MPR) Loan at the end of period is $893,176 after principal payments in the sum of$60,687. As stated Note IV C of Notes to Financial Statements.? The balance outstanding for CFDA 10.405 Farm Labor Housing Loans and Grants loan at theend of the period is $1,133,027 after principal payments in the sum of $100,695. As stated inNote IV C of Notes to the Financial Statements.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
FARM LABOR HOUSING LOANS AND GRANTS (10.405) - Balances outstanding at the end of the audit period were 1133027. THE RURAL DEVELOPMENT (RD) MULTI-FAMILY HOUSING REVITALIZATION DEMONSTRATION PROGRAM (MPR) (10.447) - Balances outstanding at the end of the audit period were 893176.