Notes to SEFA
Title: Note C — U.S. Department of Housing and Urban Development Loan Program
Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of Sullivan McKinney Elder Housing, Inc. 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). The schedule presents only a selected portion of the operations of Sullivan McKinney Elder Housing, Inc. It is not intended to, and does not present, the financial position, changes in net assets or cash flows of Sullivan McKinney Elder Housing, Inc.
De Minimis Rate Used: N
Rate Explanation: 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. Sullivan McKinney Elder Housing, Inc. has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Sullivan McKinney Elder Housing, Inc. has received a U.S. Department of Housing and Urban Development loan guarantee under section 223(f) of the National Housing Act. The insured loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the schedule. Sullivan McKinney Elder Housing, Inc. received no additional loans
during the year. The balance of the loan outstanding at December 31, 2022, consists of:
Program Name CFDA #
Mortgage insurance 14.155 $ 2,439,304