Notes to SEFA
The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of Marion West, Inc. d/b/a Marion West Apartments HUD Project Number 053-EE087 (the Corporation), under programs of the federal government for the year ended June 30, 2024 and has been prepared in accordance with accounting principles generally accepted in the United States of America. 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 Corporation, it is not intended to and does not present the financial position, change in net assets, or cash flows of the Corporation.
The Corporation has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
The Corporation has received Section 202 capital advances from the U.S. Department of Housing and Urban Development’s Supportive Housing for the Elderly program (Assistance Listing No. 14.157). Under the terms of the capital advance agreement, the Corporation must continue to operate the project for the specified purpose for a period of forty years. Failure to operate the project in accordance with the capital advance agreement would result in the Corporation being required to repay HUD the entire capital advance, plus interest, since the date of the first advance.