Notes to SEFA
Title: Loan/loan guarantee outstanding balances
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal award programs of Housing And Neighborhood Development Service (the "Organization"). The Organization's reporting entity is defined in Note A to the consolidated financial statements. All federal awards received directly from federal agencies as well as federal awards passed through other governmental agencies are included on the schedule, if applicable. The Organization maintains its records using the accrual basis of accounting, a comprehensive basis of accounting that conforms to accounting principles generally accepted in the United States of America. Under this method, expenses are recognized when incurred, not when paid. As such, the expenditure column in the schedule of expenditures of federal awards represents cash payments adjusted for payables and other accrued liabilities outstanding at year-end.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
HOME INVESTMENT PARTNERSHIPS PROGRAM (14.239) - Balances outstanding at the end of the audit period were 2008780. COMMUNITY DEVELOPMENT BLOCK GRANTS/STATE'S PROGRAM AND NON-ENTITLEMENT GRANTS IN HAWAII (14.228) - Balances outstanding at the end of the audit period were 272637.
Title: Relationship to the Consolidated Financial Statements
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal award programs of Housing And Neighborhood Development Service (the "Organization"). The Organization's reporting entity is defined in Note A to the consolidated financial statements. All federal awards received directly from federal agencies as well as federal awards passed through other governmental agencies are included on the schedule, if applicable. The Organization maintains its records using the accrual basis of accounting, a comprehensive basis of accounting that conforms to accounting principles generally accepted in the United States of America. Under this method, expenses are recognized when incurred, not when paid. As such, the expenditure column in the schedule of expenditures of federal awards represents cash payments adjusted for payables and other accrued liabilities outstanding at year-end.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Federal award revenues and expenditures are reported in the Organization's consolidated financial statements in the appropriate accounts. The information in the accompanying schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, Housing And Neighborhood Development Services consolidated financial statements. Such expenditures are recognized following, as applicable, either the cost principles in the U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowed or are limited as to reimbursement, whichever is applicable.