Notes to SEFA
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Reisterstown Village Senior Housing, Inc. (the Project) and is presented using the accrual basis of accounting. The information in this schedule is presented in accordance with the audit 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 Project, it is not intended to and does not present the financial position, changes in net deficit, or cash flows from the Project.
Expenditures (or tenant assistance payments) reported on the Schedule are reported on the accrual basis of accounting as more fully described in Note 1 to the Project financial statements, as well as in accordance with the Uniform Guidance. 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 reimbursement.
As of June 30, 2025, the Project has an outstanding balance due to the U.S. Department of Housing and Urban Development in the amount of $5,260,300, which is reported in the statement of financial position in the line item “Capital advance.” The federal government imposes continuing compliance requirements under Assistance Listing Number (ALN) No. 14.157, Supportive Housing for the Elderly (Section 202) for the balance of the loan. Per Section 200.502 of the Uniform Guidance, the balance of loans or loan guarantee programs with continuing compliance requirements should be shown on the Schedule as of the beginning of the audit period. The July 1, 2024 balance of the loan was $5,260,300.
The Project has not elected to use the 10 or 15% de minimis indirect cost rates as discussed in Uniform Guidance Section 200.414. The de minimis indirect cost rate was changed from 10% to 15% effective October 1, 2024.