Notes to SEFA
Title: Loan/loan guarantee outstanding balances
Accounting Policies: THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS HAS BEEN PREPARED ON THE ACCRUAL BASIS OF ACCOUNTING. REVENUES WERE ADJUSTED TO BALANCE THE EXPENDITURES INCURRED FOR EACH PROJECT.
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 2347195.
Title: COMPLIANCE TESTING
Accounting Policies: THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS HAS BEEN PREPARED ON THE ACCRUAL BASIS OF ACCOUNTING. REVENUES WERE ADJUSTED TO BALANCE THE EXPENDITURES INCURRED FOR EACH PROJECT.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
AN EXTENSIVE COMPLIANCE TEST, AS REQUIRED BY THE SINGLE AUDIT ACT OF 1996, WAS PERFORMED ON THE MORTGAGE INSURANCE FOR THE PURCHASE OR REFINANCING OF EXISTING MULTI-FAMILY HOUSING PROJECTS PROGRAM, WHICH REPRESENTS 89% OF THE TOTAL EXPENDITURES REFLECTED ON THE SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE. THE 20% OF COVERAGE TEST FOR AN AUDITEE THAT IS LOW RISK WAS SATISFIED AS FOLLOWS: MORTGAGE INSURANCE FOR THE PURCHASE OR REFINANCING OF EXISTING MULTI-FAMILY HOUSING PROJECTS 14.155 $2,424,318; SECTION 8 HOUSING ASSISTANCE PAYMENTS 14.195 $285,491; SECTION 8 HOUSING ASSISTANCE PAYMENTS - SPECIAL CLAIMS 14.195 $4,281 FOR A TOTAL OF $2,714,090 TIMES 20% EQUALS $542,818 THE MINIMUM AMOUNT WHICH MUST BE TESTED. THE MORTGAGE INSURANCE FOR THE PURCHASE OR REFINANCING OF EXISTING MULTI-FAMILY HOUSING PROJECTS PROGRAM EXCEEDS $542,818, AND, THEREFORE, REPRESENTS THE ONLY PROGRAM TO WHICH THE SPECIFIC COMPLIANCE REQUIREMENTS MUST BE APPLIED.