Notes to SEFA
Title: Loan/loan guarantee outstanding balances
Accounting Policies: NOTE A BASIS OF PRESENTATIONThe above schedule of expenditures of federal awards includes the federal grant activity of Loyal Heights Manor, HUD Project No. 127-11253 and 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); the financial statements have been prepared and presented based upon accounting principles generally accepted in the United States of America (US GAAP); therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements. Because the Schedule presents only a selected portion of the operations of Loyal Heights Manor, it is not intended to and does not present the financial position, change in net assets, or cash flows of Loyal Heights Manor.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
NOTE C U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT LOAN PROGRAMSLoyal Heights Manor has received a U.S. Department of Housing and Urban Development insured loan under Section 207, pursuant to Section 223(f), of the National Housing Act. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. The balance of the loan outstanding at March 31, 2022 consisted of:MORTGAGE INSURANCE FOR THE PURCHASE OR REFINANCING OF EXISTING MULTIFAMILY HOUSING PROJECTS (14.155) - Balances outstanding at the end of the audit period were $7,718,923.
Title: NOTE B SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Policies: NOTE A BASIS OF PRESENTATIONThe above schedule of expenditures of federal awards includes the federal grant activity of Loyal Heights Manor, HUD Project No. 127-11253 and 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); the financial statements have been prepared and presented based upon accounting principles generally accepted in the United States of America (US GAAP); therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements. Because the Schedule presents only a selected portion of the operations of Loyal Heights Manor, it is not intended to and does not present the financial position, change in net assets, or cash flows of Loyal Heights Manor.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
Expenditures reported on the Schedule 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. Loyal Heights Manor has elected not to use the ten percent (10%) de Minimis indirect cost rate allowed under the Uniform Guidance.