Notes to SEFA
Title: BASIS OF PRESENTATION
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.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Ozanam Inn under programs of the federal government for the year ended September 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 the Inn, it is not intended to and does not present the financial position, changes in net assets, or cash flow of Ozanam Inn.
Title: SUBRECIPIENTS
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.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
There were no awards passed through to recipients.
Title: LOAN(S) WITH CONTINUING COMPLIANCE REQUIREMENTS
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.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
As disclosed in note 11 to the financial statements, the forgivable loan with continuing compliance requirements bears interest of 0% in the amount of $3,000,000 payable to the City of New Orleans (the City). The loan was allocated by the City utilizing Community Development Block Grant (CDBG) - Coronavirus, Aid, Relief and Economic Security (CARES) Act funds designated for the expansion of the Inns shelter and was used towards the purchase of a new facility. The full amount of the loan award was used during the year ended September 30, 2021, and is included as federal expenditures on the Statement of Expenditures of Federal Awards as assistance listing #14.218. The loan will be forgiven in full after the Inn maintains compliance by owning and operating the facility as a public facility homeless shelter for a minimum of ten years from the date of occupancy (November 1, 2021). At September 30, 2022, the balance of the loan remained at $3,000,000 and will continue to be reported as a liability and included on the Inns schedule of expenditures of federal awards until the ten-year compliance service period has concluded.