Notes to SEFA
Title: Loan/loan guarantee outstanding balances
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures arerecognized following, as applicable, either the cost principles contained in OMB A-122 or the cost principlescontained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited asto reimbursement. Heritage Manors of Southeast Arkansas, Inc. has elected not to use the 10 percent deminimis indirect cost rate as 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 2943277.
Title: Basis of Presentation
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures arerecognized following, as applicable, either the cost principles contained in OMB A-122 or the cost principlescontained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited asto reimbursement. Heritage Manors of Southeast Arkansas, Inc. has elected not to use the 10 percent deminimis indirect cost rate as allowed under the Uniform Guidance.
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 awardactivity of the Project under programs of the federal government for the year ended June 30, 2022. Theinformation in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of FederalRegulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements forFederal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ fromamounts presented in, or used in the preparation of, the basic financial statements. Because the Schedulepresents only a selected portion of the operations of the Project, it is not intended to and does not present thefinancial position, changes in net assets or cash flows of the Project.