Notes to SEFA
Title: Loan/loan guarantee outstanding balances
Accounting Policies: NOTE A: BASIS OF PRESENTATION: The accompanying schedule of expenditures of federal awards includes the federal award activityof SNHS Elderly Housing VII, Inc., HUD Project No. 024-EE112, 024-EE123 and 024-EE140, andis presented on the accrual basis of accounting. 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(Uniform Guidance). Because the Schedule presents only a selected portion of the operations ofSNHS Elderly Housing VII, Inc., it is not intended to and does not present the financial position,changes in net assets, or cash flows of SNHS Elderly Housing VII, Inc.NOTE B: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Suchexpenditures are recognized following the cost principles contained in the Uniform Guidance,wherein certain types of expenditures are not allowable or are limited as to reimbursement. SNHSElderly Housing VII, Inc. has elected not to use the 10 percent de minimis indirect cost rate asallowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
SUPPORTIVE HOUSING FOR THE ELDERLY (14.157) - Balances outstanding at the end of the audit period were 10890800.