Notes to SEFA
Title: Loan/loan guarantee outstanding balances
Accounting Policies: Basis of PresentationThis schedule includes the federal grant activity of Franklin Senior Housing, Inc. under programs of the federalgovernment for the year ended December 31, 2022. The information in this schedule is presented in accordancewith the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements,Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance). Because the Schedulepresents only a selected portion of the operations of Franklin Senior Housing, Inc., it is not intended to and doesnot present the financial position, changes in net assets, or cash flows of Franklin Senior Housing, Inc.
De Minimis Rate Used: N
Rate Explanation: Summary of Significant Accounting Policies1) Expenditures reported on the Schedule are reported on the accrual basis of accounting, except for thecapital advance as discussed below.2) Franklin Senior Housing, Inc.s federal award is not based on eligible costs incurred. Accordingly, FranklinSenior Housing, Inc. has not made an election related to the use of the 10% de minimis indirect cost ratedescribed in the Uniform Guidance.
Capital AdvanceFederal expenditures reported as capital advance represent the December 31, 2021 balance of a capitaladvance which was received in prior periods. The grantor imposes continuing compliance requirements. Thebalance of the capital advance outstanding as of December 31, 2022 is $4,407,500.