Notes to SEFA
Title: Loan/loan guarantee outstanding balances
Accounting Policies: Basis of PresentationThe accompanying schedule of expenditures of federal awards includes the federal award activity of Zvago Cooperative at Glen Lake 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 Requirement, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance). Because the schedule presents only a selected portion of the operations of the Cooperative, it is not intended to and does not present the financial position, changes in net assets (deficit), or cash flows of the Cooperative.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 type of expenditures are not allowable or are limited as to reimbursement. Zvago Cooperative at Glen Lake has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.U.S. Department of Housing and Urban Development Loan ProgramZvago Cooperative at Glen Lake has received a U.S. Department of Housing and Urban Development loan under Section 213 of the National Housing Act. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. Zvago Cooperative at Glen Lake refinanced its mortgage in November 2021. The balance of the loan outstanding on June 30, 2022 was $14,646,176.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
MORTGAGE INSURANCE_COOPERATIVE PROJECTS (14.126) - Balances outstanding at the end of the audit period were 14646176.