Notes to SEFA
Title: Loan/loan guarantee outstanding balances
Accounting Policies: NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES1) Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures arerecognized following the cost principles contained in the Uniform Guidance, wherein certain types of expendituresare not allowable or are limited as to reimbursement. 2) New Morning Apartments has elected to not use the 10-percent de minimis 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.
SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES (14.181) - Balances outstanding at the end of the audit period were 1694800.
Title: NOTE A - BASIS OF PRESENTATION
Accounting Policies: NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES1) Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures arerecognized following the cost principles contained in the Uniform Guidance, wherein certain types of expendituresare not allowable or are limited as to reimbursement. 2) New Morning Apartments has elected to not use the 10-percent de minimis 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 grant activity ofNew Morning Apartments, Inc., HUD Project No. 085-HD042, under programs of the federal government for theyear ended December 31, 2022. The information in this schedule is presented in accordance with therequirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, CostPrinciples, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents onlya selected portion of the operations of New Morning Apartments, Inc., it is not intended to and does not presentthe financial position, changes in net assets, or cash flows of New Morning Apartments, Inc. Therefore, someamounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basicfinancial statements. The balance of the capital advances outstanding at the end of the audit period was the sameas the balance presented on the accompanying schedule of expenditures of federal awards.
Title: NOTE C - U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT LOAN PROGRAM
Accounting Policies: NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES1) Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures arerecognized following the cost principles contained in the Uniform Guidance, wherein certain types of expendituresare not allowable or are limited as to reimbursement. 2) New Morning Apartments has elected to not use the 10-percent de minimis 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.
New Morning Apartments, Inc. has received a U.S., Department of Housing and Urban Development direct loanunder Section 811 of the National Affordable Housing Act of 1990. The loan balance outstanding at the beginningof the year is included in the federal expenditures presented in the Schedule. New Morning Apartments, Inc.received no additional loans during the year. The balance of the loan outstanding at December 31, 2021 consistsof:Outstanding Balance atCFDA Number Program Name December 31, 202114.181 Section 811 Supportive Housing for Persons with Disabilities $ 1,694,800