Notes to SEFA
Title: Section 236 Interest Reduction Payment Program
Accounting Policies: The accompanying schedule of expenditures of federal awards is presented using the accrual basis of accounting. This basis of accounting is described in Note 2 to the Organizations basic financial statements. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Section 236 Interest Reduction Payment Program (Program) loan is provided by CPCMortgage Company, LLC (CPC), NJHMFA and the Secretary of Housing and Urban Development(HUD). The loan totaling $1,009,000, at time of receipt, represents a portion of the mortgage that isapplicable to the interest reduction. HUD forwards $31,493 to CPC each month to be used as areduction of interest applicable to the initial mortgage of the Organization.