Notes to SEFA
The Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of Hamilton Families (Hamilton) under programs of the federal government for the year ended June 30, 2024. 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 Hamilton, it is not intended to and does not present the financial position, changes in net assets or cash flows of Hamilton.
Federal awards received under the HOME Investment Partnership Program are in the form of a loan of $4,173,291 for a period of 75 years. The loan is secured by a deed of trust on land and improvements, and assignment of rents. The Loan obligation will be waived at the end fo the loan term providing that the loan is not in default. IN the event of default, compound interest at 10% will be charged for the period from initial borrowing through the date of repayment of the loan. Management has determined that hte likelihood of Hamilton violating the terms of the loan agreement is remote. Therefore, during the year ended June 30, 2005, the loan was reclassified as a time restricted contribution. This amount will remain restricted until the loan matures in 2075.
Hamilton has elected to not use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Hamilton applies indirect cost in accordance with specific terms of its award agreements.