Notes to SEFA
The accompanying schedule of expenditures of federal awards (the “schedule”) includes the federal awards activity of Magnolia Manor of Macon Supportive Housing, Inc. (“Magnolia”) under programs of the federal government for the year ended June 30, 2025. The information in the 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 Magnolia, it is not intended to and does not present the financial position, changes in net assets or cash flows of Magnolia.
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 to reimbursement. Magnolia has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Magnolia’s federal program is subject to financial and compliance audits by grantor agencies which, if instances of material noncompliance are found, may result in disallowed expenditures and affect its continued participation in specific programs. The amount, if any, of expenditures, which may be disallowed by the grantor agencies, cannot be determined at this time. However, Magnolia expects such amounts, if any, to be immaterial.
Awards under Section 202 Supportive Housing for the Elderly include both capital advances and rental assistance. Federal expenditures reported in the accompanying schedule include the outstanding principal balance on the mortgage note payable at July 1, 2025 and tenant assistance payments received during the year ended June 30, 2025.
None of the expenditures reported on the schedule were passed through to subrecipients.