Notes to SEFA
The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of K&L Housing Development Fund Company, Inc., HUD Project No. 012EE118, under programs of the federal government for the year ended December 31, 2025. 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 the Company, it is not intended to and does not present the financial position, changes in net assets or cash flows of K&L Housing Development Fund Company, Inc. For the year ended December 31, 2025, no awards were passed through to subrecipients.
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
K&L Housing Development Fund Company, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under Uniform Guidance.
K&L Housing Development Fund Company, Inc. has received a U.S. Department of Housing and Urban Development capital advance under Section 202 of the National Housing Act. The capital advance balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. K&L Housing Development Fund Company, Inc. received no additional capital advances during the years. The balance of the capital advance outstanding at December 31, 2025 is as follows: