Notes to SEFA
The accompanying schedule of expenditures of federal awards includes the federal granting activity of Russellville Housing Incorporated HUD Project 083-EE102 (Russellville) 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 (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements.
The accompanying schedule of expenditures of federal awards includes a capital advance balance outstanding at January 1, 2025 of $2,222,335. During the year ended December 31, 2025, principal payments of $0 were paid on the capital advance. As of December 31, 2025, the capital advance balance outstanding is $2,222,335.
Russellville does not use the 10% de minimis indirect cost rate as covered in section 200.414 of the Uniformed Guidance for Federal Awards. Instead of electing a 10% de minimis indirect cost rate, Russellville has a HUD-approved management agreement allowing a percent of defined gross revenue or per unit month fee to cover administrative fees as set forth in the agreement.