Notes to SEFA
Title: Basis of Presentation
Accounting Policies: Expenditures reported in the Schedule are reported on the accrual basis of accounting. Such expenditures arerecognized following, as applicable, either the cost principles in the Office of Management and Budget Circular A-122, Cost Principles for Non-Profit Organizations, or the cost principles contained in the Uniform Guidance,wherein certain types of expenditures 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.
The accompanying Schedule of Expenditures of Federal Awards (the "Schedule") includes the federal grant activityof St. Cloud Villas II, Inc. (the "Project") under programs of the federal government for the year ended December 31,2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code ofFederal Regulations, Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements forFederal Awards ("Uniform Guidance"). Because the Schedule presents only a select portion of the operations of theProject, it is not intended to, and does not, present the financial position, changes in net assets, or cash flows of theProject.
Title: Capital Advance Program
Accounting Policies: Expenditures reported in the Schedule are reported on the accrual basis of accounting. Such expenditures arerecognized following, as applicable, either the cost principles in the Office of Management and Budget Circular A-122, Cost Principles for Non-Profit Organizations, or the cost principles contained in the Uniform Guidance,wherein certain types of expenditures 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.
The amount under Federal Expenditures for AL 14.157 represents the U.S. Department of Housing and UrbanDevelopment's Section 202 capital advance outstanding as of December 31, 2022, and not funds expended duringthe year.