Notes to SEFA
Title: Loan/loan guarantee outstanding balances
Accounting Policies: Note A - Basis of PresentationThe accompanying schedule of expenditures of federal awards includes the federal grant activity of Big Sky Apartments, HUD Project No. 093-11011, 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 theoperations of Big Sky Apartments, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Big Sky Apartments.Note B - Summary of Significant Accounting PoliciesExpenditures 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. Big Sky Apartments has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
MORTGAGE INSURANCE FOR THE PURCHASE OR REFINANCING OF EXISTING MULTIFAMILY HOUSING PROJECTS (14.155) - Balances outstanding at the end of the audit period were 1729220.