Notes to SEFA
Title: CAPITAL ADVANCE AND FORGIVABLE PAYMENT NOTE
Accounting Policies: The schedule of expenditures of federal awards 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 Sherman Apartments Association, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Sherman Apartments Association. 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.
Sherman Apartments Associations capital advance and forgivable payment note were funded in prior years and are subject to continuing compliance requirements. The amounts under the capital advance and the forgivable payment note have not changed in the year ended June 30, 2022.
Title: OTHER
Accounting Policies: The schedule of expenditures of federal awards 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 Sherman Apartments Association, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Sherman Apartments Association. 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.
Sherman Apartments Association did not receive any federal noncash assistance or provide any funding to subrecipients and they also did not have any federal insurance.