Notes to SEFA
The accompanying schedule of expenditures of federal awards includes the federal grant activity of Encore Community Services and Affiliates, (the “Agency”) under programs of the federal government for the year ended June 30, 2025. It does not include programs of subsidiaries referred to in Note 5. 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”). Because the schedule presents only a selected portion of the operations of the Agency, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Agency.
Expenditures reported on the schedule of expenditures of federal awards are presented on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in OMB’s Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”). Under federal cost principles, certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available.
The Agency has elected not to use the 10-percent de minimus indirect cost rate allowed under the Uniform Guidance
There were no amounts provided to subrecipients from federal awards received during the year ended June 30, 2025
Encore West Residence Housing Development Fund Corporation (“Encore West HDFC”), an affiliate, which is included in the consolidated financial statements of the Agency, has received a HUD capital advance and project rental assistance under Section 202 Supportive Housing for the Elderly program. The awards are included in the federal expenditures presented in the schedule of expenditures of federal awards of Encore West HDFC. The awards are not presented on the Agency’s schedule of expenditures of federal awards as they were audited as part of Encore West Residence’s Single Audit. The Agency received no additional loans or capital advances during the year. The balance of the capital advance outstanding at June 30, 2025 was $13,262,100. The total amount of the project rental assistance for the year ended June 30, 2025 was $854,084.