Notes to SEFA
Title: Basis of Presentation
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting.Such expenditures are recognized following the cost principles contained in theUniform Guidance, wherein certain types of expenditures are not allowable or arelimited 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 award activity of TCOA Elderly Housing, Inc. under programs ofthe federal government for the year ended December 31, 2022. The information in thisschedule 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 for Federal Awards (Uniform Guidance). Because theSchedule presents only a selected portion of the operations of TCOA Elderly Housing,Inc., it is not intended to and does not present the financial position, changes in netassets, or cash flows of TCOA Elderly Housing, Inc.
Title: Capital Advance
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting.Such expenditures are recognized following the cost principles contained in theUniform Guidance, wherein certain types of expenditures are not allowable or arelimited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
TCOA Elderly Housing, Inc. received a capital advance from HUD for construction ofmultifamily residual housing facility secured by a mortgage note. The note balanceoutstanding is included in the federal expenditures presented in Schedule 6. TCOAElderly Housing, Inc. received no additional notes or loans during the year. The balanceof the note outstanding as of December 31, 2022 consists of: 14.157, HUD 202 Capital Advance, $4,082,400.