Notes to SEFA
The accompanying schedule of expenditures of federal awards includes the federal award activity of The American Cooperative on Lake Phalen 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 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 American Cooperative on Lake Phalen, it is not intended to and does not present the financial positions, changes in net assets (deficit), or cash flows of The American Cooperative on Lake Phalen.
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain type of expenditures are not allowable or are limited as to reimbursement. The American Cooperative on Lake Phalen has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance
The American Cooperative on Lake Phalen has received a U. S. Department of Housing and Urban Development loan under Section 213 of the National Housing Act. The loan balance outstanding at the beginning of the period is included in the federal expenditures presented in the Schedule. The American Cooperative on Lake Phalen received $1,658,498 of loan proceeds during the period from July 1, 2025 through December 31, 2025. The balance of the loan outstanding at December 31, 2025 was $20,909,565.