Title: Loan/loan guarantee outstanding balances
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal expenditure activity of Milford Housing Development Corporation and Affiliates, under programs of the federal government for the year ended December 31, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) 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 the Corporation, it is not intended to and does not present the Corporations financial position, changes in net assets, or cash flows.Expenditures 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.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
USDA - RD: Long-term debt instruments were provided by RD pursuant to its Rural Housing Program under Section 515 of the National Housing Act of 1949 for Academy Apartments, Acorn Acres Apartments, Alicia Arms Apartments, Carlton Court Apartments, ECL Annex, Edenton Manor, Fairhaven Manor I, Greenwood Acres Apartments, Harbour Towne, Marshall Manor Apartments, Park Royal Apartments, Ridgely Meadows, 2nd Fairhaven Apartments, West Street Elderly Apartments, and West Street Manor Annex Apartments. The debt instruments are secured by mortgages on the real estate, interests in personal property, and assignments of income to be derived from the Projects. * The amount of interest charged is reduced to 1% by a subsidy provided by RD which reduces the monthly payment.DSHA - HOME: Long-term debt instruments were provided by DSHA pursuant to the HOME program for Acorn Acres Apartments, East Atlantic, ECL Annex, Harbour Towne, Lingo Creek, Long Neck, Luther Gardens Apartments, Marshall Manor Apartments, Milton Landing Apartments, and West Street Manor Annex Apartments. The debt instruments are secured by mortgages on the real estate, interests in personal property, and assignments of income to be derived from the Projects. No repayments on the debt instruments are required unless there is available cash flow, as defined in the DSHA Regulatory Agreements. RURAL RENTAL HOUSING LOANS (10.415) - Balances outstanding at the end of the audit period were 13237451. HOME INVESTMENT PARTNERSHIPS PROGRAM (14.239) - Balances outstanding at the end of the audit period were 8907340.
Title: NOTE 1 - BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICI
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal expenditure activity of Milford Housing Development Corporation and Affiliates, under programs of the federal government for the year ended December 31, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) 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 the Corporation, it is not intended to and does not present the Corporations financial position, changes in net assets, or cash flows.Expenditures 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.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
USE OF ESTIMATES: The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.CASH AND CASH EQUIVALENTS, LIQUIDITY: Management considers all highly liquid investments with a maturity of three months or less at the date of acquisition, to be cash and cash equivalents. Excess cash is invested in money market accounts with local banking institutions. CREDIT RISK: Cash and cash equivalents are maintained at financial institutions and, at times, balances may have exceeded the federally insured limits. RESTRICTED DEPOSITS AND FUNDED RESERVES: Restricted deposits consist of the following: escrow funds which are held by DSHA and financial institutions as approved by RD, and tenant security deposits which are held in separate bank accounts in the name of the Projects. The Regulatory Agreements (the Agreements) require monthly payments, as specified by authorities on an annual basis, for insurance premiums and real estate taxes where payments are made by management, or an authority on the Projects behalf, and are expensed by management based on the respective effective periods, and into a restricted reserve for replacement account where withdrawals can be made for repair and/or replacement of, and capital improvements to, the apartment complexes, subject to approval of the authorities. The Corporation is also required to maintain separate bank accounts for the Self Help Housing program.INVESTMENTS: Investments represent endowments and pooled income funds held for long-term investment. The fair value of marketable investments in equity and debt securities (which include both domestic and foreign issues) and U.S. government obligations are based on the published current market value at year end. The fair values of the Corporations investments in foundations are based on managements valuation of estimates and assumptions from information and representations provided by the respective fund managers in the absence of readily ascertainable market values. Because of the inherent uncertainty of valuation, it is reasonably possible that estimated values may differ significantly from the values that would have been used had a ready market for the securities existed, and the differences could be material. Financial instruments which potentially subject the Corporation to a concentration of credit risk consist principally of investments held by credit-worthy financial institutions. By policy, these investments are kept within limits designed to prevent risk caused by concentration. PROPERTY AND EQUIPMENT: Property and equipment are recorded at cost and are depreciated on the straight-line method over the estimated useful lives of the assets, which are 25 to 50 years for the buildings and improvements and 5 to 20 years for the equipment. Additions and betterments of $5,000 and above are capitalized, while repairs and maintenance that do not improve or extend the useful life of the respective assets are expensed currently. In accordance with Accounting Standards Codification (ASC), No. 360, Accounting for the Impairment or Disposal of Long-Lived Assets, management reviews property for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recovered. If the fair value is less than the carrying amount of the asset, an impairment loss is recognized for the difference. No impairment losses have been recognized during the years presented.ADVERTISING: Advertising costs are expensed when incurred.
Title: NOTE 1 - BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICI
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal expenditure activity of Milford Housing Development Corporation and Affiliates, under programs of the federal government for the year ended December 31, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) 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 the Corporation, it is not intended to and does not present the Corporations financial position, changes in net assets, or cash flows.Expenditures 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.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
SUBSEQUENT EVENTS: Events and transactions subsequent to year end have been evaluated for potential recognition in the financial statements or disclosure in the notes to the financial statements. All events and transactions have been evaluated through June 9, 2023, the date the report was available for issuance.As a result of the spread of COVID-19 (Coronavirus) and its variants economic uncertainties have arisen which are likely to negatively impact income. Other financial impact could occur, though such potential impact is unknown at this time.