Notes to SEFA
Title: Note 3 Loans
Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activities ofForest Meadows Apartments, Inc. (Organization). The information in this schedule is presented inaccordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, UniformAdministrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UniformGuidance). Because the schedule presents only a selected portion of the operations of the Organization,it is not intended to and does not present the financial position, changes in net assets, or cash flows of theOrganization.Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expendituresare recognized following the cost principles contained in the Uniform Guidance, wherein certain types ofexpenditures are not allowable or are limited as to reimbursement.
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 935400.
Title: Note 4 Contingency
Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activities ofForest Meadows Apartments, Inc. (Organization). The information in this schedule is presented inaccordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, UniformAdministrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UniformGuidance). Because the schedule presents only a selected portion of the operations of the Organization,it is not intended to and does not present the financial position, changes in net assets, or cash flows of theOrganization.Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expendituresare recognized following the cost principles contained in the Uniform Guidance, wherein certain types ofexpenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Expenditures incurred by the Organization are subject to audit and possible disallowance by federalagencies. Management believes that, if audited, an adjustment for disallowed expenses would beimmaterial.