Notes to SEFA
The accompanying schedule of expenditures of federal awards includes the federal award activity of Gorman Towers, Inc. HUD Community No. 082-11058, 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 Gorman Towers, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Gorman Towers, Inc.
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 types of expenditures are not allowable or are limited as to reimbursement. Gorman Towers, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Gorman Towers, Inc. has received a U.S. Department of Housing and Urban Development loan under Section 223(f) of the National Housing Act (ALN number 14.155). The loan balance as of September 1, 2024 is included in the federal expenditures presented in the schedule. Gorman Towers, Inc. received no additional loans during the year. The outstanding principal balance at August 31, 2025 was $3,349,648.