Notes to SEFA
Title: Note 3 Mortgage Payable
Accounting Policies: The schedule of expenditures of federal awards includes the federal grant activity of Mulford Apartments, HUDProject No. 071-HD160, and is presented on the accrual basis of accounting. The information in this schedule ispresented in accordance with the requirement of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, UniformAdministrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore someamounts presented in this schedule may differ from amounts presented in, or used in the preparation of, thebasic financial statements.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The capital advance represents total proceeds received in prior years. If the Project does not meet certain compliance requirement for a period of 40 years the balance plus accrued interest must be repaid.