Notes to SEFA
Title: Loan/loan guarantee outstanding balances
Accounting Policies: Expenditures reported in the Schedule are presented on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or area limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
SUPPORTIVE HOUSING FOR THE ELDERLY (14.157) - Balances outstanding at the end of the audit period were 1938100.
Title: SUPPORTIVE HOUSING FOR THE ELDERLY
Accounting Policies: Expenditures reported in the Schedule are presented on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or area limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
During the period January 2009 through December 2011, the total amount of $1,938,100 was expended for the Academy Place Apartments project referenced in Note 11. The Department of Housing and Urban Development (HUD), as a means of protecting its interest in a capital advance, requires a note and mortgage for a 40-year term. This note and accrued interest of $102,557, are receivables of Academy Place Housing Development Fund Company, Inc., are reported as liabilities on the balance sheet of Academy Place Apartments, L.P. The principal and interest are not required to be repaid and the note is forgiven at maturity, as long as housing is provided for the designated class of people in accordance with applicable HUD requirements. The full outstanding balance of $1,938,100 on the note is considered Federal awards expended, included in determining Type A programs, and reported as loans on the Schedule of Expenditures of Federal Awards or accompanying notes in accordance with the Uniform Guidance.