Notes to SEFA
The accompanying Schedule of Expenditures of Federal Awards includes the federal award activity of Villa Isenbart 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). Because the schedule presents only a selected portion of the operations of Villa Isenbart, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Villa Isenbart.
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. Villa Isenbart has elected not to use the 15 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
The Project received a Capital Advance from the U.S. Department of Housing and Urban Development under the Section 202 Supportive Housing for the Elderly program, Assistance Listing Number 14.157. The Capital Advance is secured by a mortgage on the Project's property and is subject to continuing federal compliance requirements throughout the 40-year affordability period. The outstanding Capital Advance balance of $1,934,200 at July 1, 2025 is included in the Schedule of Expenditures of Federal Awards pursuant to 2 CFR 200.502(b). No additional capital advances were received or repayments made during the year. The outstanding balance at June 30, 2026 was $1,934,200. The Capital Advance bears no interest and requires no repayment provided the Project remains available to eligible very low-income elderly persons throughout the required affordability period and complies with the applicable HUD agreements.