Notes to SEFA
The accompanying schedule of expenditures of federal awards (the "Schedule" ) includes the federal award activity of Arroyo Commons, Inc., HUD Project No.: 121-HD020 under programs of the federal government for the year ended December 31, 2025. 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 . Because the Schedule presents only a selected portion of the operations of Arroyo Commons, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Arroyo Commons, Inc. For the year ended December 31, 2025, no awards were passed through to subrecipients.
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in OMB Circular A-122, "Cost Principles for Non-Profit Corporations" and the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Arroyo Commons, Inc. has elected not to use the de minimis indirect cost rate allowed under the Uniform Guidance.
The balance shown on the schedule of expenditures of federal awards relating to the Section 811 capital advance consists of $1,177,500 expended in prior years. Section 811 capital advances need not be repaid as long as the owner continues to make the housing available to the very low-income individuals with developmental disabilities for at least 40 years. The balance shown on the schedule of expenditures of federal awards relating to the HOME Investment Partnerships Program passed through the County of Alameda consists of $497,900 expended in prior years. The loan need not be repaid as long as the owner continues to comply with the loan requirements.