Notes to SEFA
Title: Basis of Presentation
Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures arerecognized following the cost principles contained in the Uniform Guidance, wherein certain types of expendituresare not allowable or are limited to reimbursement.
De Minimis Rate Used: N
Rate Explanation: Magnolia has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
The accompanying schedule of expenditures of federal awards (the schedule) includes the federal awards activityof The Magnolia Manor of Macon Supportive Housing, Inc. (Magnolia) under programs of the federal governmentfor the year ended June 30, 2022. The information in the schedule is presented in accordance with the requirementsof Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, andAudit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selectedportion of the operations of Magnolia, it is not intended to and does not present the financial position, changes innet assets or cash flows of Magnolia.
Title: Contingencies
Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures arerecognized following the cost principles contained in the Uniform Guidance, wherein certain types of expendituresare not allowable or are limited to reimbursement.
De Minimis Rate Used: N
Rate Explanation: Magnolia has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Magnolias federal program is subject to financial and compliance audits by grantor agencies which, if instances ofmaterial noncompliance are found, may result in disallowed expenditures and affect its continued participation inspecific programs. The amount, if any, of expenditures, which may be disallowed by the grantor agencies, cannotbe determined at this time. However, Magnolia expects such amounts, if any, to be immaterial.
Title: Loan Balances and Rental Assistance
Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures arerecognized following the cost principles contained in the Uniform Guidance, wherein certain types of expendituresare not allowable or are limited to reimbursement.
De Minimis Rate Used: N
Rate Explanation: Magnolia has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Awards under Section 202 Supportive Housing for the Elderly include both capital advances and rental assistance.Federal expenditures reported in the accompanying schedule include the outstanding principal balance on themortgage note payable at June 30, 2021 and tenant assistance payments received during the year ended June 30,2022.
Title: Subrecipient Payments
Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures arerecognized following the cost principles contained in the Uniform Guidance, wherein certain types of expendituresare not allowable or are limited to reimbursement.
De Minimis Rate Used: N
Rate Explanation: Magnolia has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
None of the expenditures reported on the schedule were passed through to subrecipients.