Notes to SEFA
The accompanying schedule of expenditures of federal awards (Schedule) presents the federal grant activity of Stilly Valley Center 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. Therefore, some amounts presented in this Schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.
1. Expenditures reported on the 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 (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. 2. Pass-through entity identifying numbers are presented where available. 3. Stilly Valley Center did not pass through any funds to subrecipients during 2022. 4. Stilly Valley Center has not adopted the 10 percent de minimus indirect cost rate.
Stilly Valley Center and Affiliates received the following funding through loans and grants from the U.S. Department of Housing and Urban Development and other agencies. Loan documents require compliance with program regulations until the maturity date of the loan or the period of affordability expires. Loans outstanding at the beginning of the year and loans made during the year are included in the federal expenditures presented in the Schedule. The amortizing loan balances outstanding at December 31, 2022, are included in the accompanying schedule of expenditures of federal awards and are as follows: Loan Maturity Outstanding Number Date Loan Balance U.S. Department of Agriculture Rural Rental Housing Loan 56-31-951548780-01-8 9/1/2039 $ 998,613 Stilly Valley Center obtained financing for improvements of the Center through forgivable loans. Under the terms of the agreements, repayment is not required as long as the building is used for the benefit of low-income seniors. The restricted use requirements extend through the periods noted below. The Organization believes that the construction of the improvements of the building met the primary requirements of the agreements and has the intent and ability to meet the use restrictions. Therefore, the forgivable loan proceeds have been classified as unrestricted net assets. The loan balances outstanding are also included in the federal expenditures in the Schedule.