Notes to SEFA
Title: U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT CAPITAL ADVANCE
Accounting Policies: Expenditures reported on the accompanying schedule of expenditures of federal awards (Schedule) are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Community Action Housing Corporation (Region I) has received a capital advance from the U.S. Department of Housing and Urban Development under Section 811 of the National Housing Act. The capital advance does not have to be repaid as long as the housing remains available for very low-income persons with disabilities for at least 40 years. To protect this capital advance, HUD requires a note and mortgage, for a 40-year term. The Corporation is not required to repay this principal or pay interest and the note is forgiven at maturity of June 1, 2048, as long as the Corporation provides housing for the designated class of people in accordance with applicable HUD requirements. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. Community Action Housing Corporation (Region I) received no additional loans during the year. The balance of the loan outstanding at June 30, 2022 consists of: SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES (14.181) - Balances outstanding at the end of the audit period were 982153.
Title: BASIS OF PRESENTATION
Accounting Policies: Expenditures reported on the accompanying schedule of expenditures of federal awards (Schedule) are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Schedule includes the federal grant activity of Community Action Housing Corporation (Region I) 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 (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements.