Notes to SEFA
The accompanying schedule of expenditures of federal awards includes the federal grant activity of Fulton Gardens II, HUD Project No. 114-EE150. 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. Because the Schedule presents only a selected portion of the operations of Fulton Gardens II, it is not intended to and does not present the financial position, changes in net assets or cash flows of Fulton Gardens II.
Expenditures reported in 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 reimbursements.
The Project has received a capital advance under section 202 of the National Housing Act. The capital advance balance at the beginning of the period is included in the federal expenditures presented in the schedule. The Project received no additional funds during the year. The capital advance is included with net assets with donor restrictions in the statement of financial position.
The Project has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.