Notes to SEFA
Title: Note 4: U.S. Department of Housing and Urban Development (HUD) Section 811
Accounting Policies: Basis of Presentation - The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Richland Apartments, Inc. (Richland) under programs of the federal government for the year ended June 30, 2022. 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 Richland, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Richland. Summary of Significant Accounting Policies - 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. No federal financial assistance has been provided to a subrecipient.
De Minimis Rate Used: N
Rate Explanation: Richland has elected not to use the 10-percent deminimus indirect cost rate allowed under the Uniform Guidance.
The HUD Section 811 Capital Advance is administered directly by Richland, and the balance and transactions relating to the capital advance are included in Richland's financial statements. The capital advance outstanding is included in the federal expenditures included in the Schedule. The balance of loans outstanding at June 30, 2022 consists of: CFDA Number - 14.181; Program name - Supportive Housing for Persons with Disabilities; Outstanding Balance - $804,700