Notes to SEFA
Title: Loan/loan guarantee outstanding balances
Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity ofJerald H. Merrill Senior Housing Corporation, HUD Project No. 105-EE007, and is presented onthe accrual basis of accounting. The information in this schedule is presented in accordance with therequirements of Title 2 U.S. Code of Federal Regulations(CFR) Part 200, Uniform AdministrativeRequirements, Cost Principals and Audit Requirements for Federal Awards (Uniform Guidance).Therefore, some amounts presented in this schedule may differ from amounts presented in, or used inthe preparation of, the basic financial statements. Management has elected to use the 10% de Minimisindirect cost rate for certain costs
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
Section 202 Capital Advance with the Department of Housing and Urban Development in the amount of $1,798,190. (See Note 3 Capital Advance). This loan balance outstanding is included in the federal expenditures presented in the schedule.