Notes to SEFA
Title: Loan/loan guarantee outstanding balances
Accounting Policies: NOTE 2SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reported on the schedule are reported 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 are limited as to reimbursement. The Project has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
NOTE 3U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT LOAN PROGRAMFlamboyant Gardens Apartment received a HUD-insured mortgage from Merchants Capital under the provisions and regulations of Section 223(f) of the National Housing Act. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the schedule. Flamboyant Gardens Apartments received no additional loans during the year. The balance of the loan note outstanding at September 30, 2022, consists of: A.L. Number - 14.155 Program - Section 223(f) Direct LoanBalance $3,230,578
Title: NOTE 1 BASIS OF PRESENTATION
Accounting Policies: NOTE 2SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reported on the schedule are reported 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 are limited as to reimbursement. The Project has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
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 activity of Lutheran Housing Association for the Elderly of the V.I., Inc.'s Flambouyant Gardens Apartments (Flamboyant Gardens Apartments), Project Number 056-11029, under programs of the federal government for the year ended September 30, 2022. The information in this 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). Because the schedule presents only a selected portion of the operations of Flambouyant Gardens Apartments, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Flambouyant Gardens Apartments.