Notes to SEFA
Title: NOTE C - U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT LOAN PROGRAM
Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of JFM No. 2 Corp., HUD Project No. 024-HD052-WDD, 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 Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of JFM No. 2 Corp., it is not intended to and does not present the financial position, changes in net assets, or cash flows from JFM No. 2 Corp.
De Minimis Rate Used: N
Rate Explanation: Expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. JFM No. 2 Corp. has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
JFM No. 2 Corp. has received a U.S. Department of Housing and Urban Development direct loan under Section 811 of the National Housing Act. The loan balance outstanding at the beginning of the period is included in the federal expenditures presented in the Schedule. JFM No. 2 Corp. received no additional loans during the period. The balance of the loan outstanding at March 31, 2022 consists of: Outstanding Balance atCFDA Number Program Name March 31, 2022 14.181Section 811 Capital Advance$1,528,300