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.
RURAL RENTAL HOUSING LOANS (10.415) - Balances outstanding at the end of the audit period were 929577.
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 RURAL RENTAL HOUSING LOAN PROGRAM, WHICH REPRESENTS 86% OF THE TOTAL EXPENDITURES REFLECTED ON THE SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE. THE 20% OF COVERAGE TEST FOR A LOW RISK AUDITEE WAS SATISFIED AS FOLLOWS: RURAL RENTAL HOUSING LOANS 10.415 $932,760; RURAL RENTAL ASSISTNACE PAYMENTS 10.427 $155,593 TOTALS $1,088,353 TIMES 20% EQUALS $217,671, WHICH IS THE MINIMUM AMOUNT WHICH MUST BE TESTED. THE RURAL RENTAL HOUSING LOANS PROGRAM EXCEEDS $217.671, AND, THEREFORE, REPRESENTS THE ONLY PROGRAM TO WHICH THE SPECIFIC COMPLIANCE REQUIREMENTS MUST BE APPLIED.