Notes to SEFA
Title: U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT INSURED LOAN PROGRAM
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 the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: Division Housing Corporation has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
Upon permanent conversion, which occurred on May 1, 2014, the mortgage notes became insured by the U.S. Department of Housing and Urban Development ("HUD") under Section 542(c) of the Housing and Community Development Act of 1992 - Federal Housing Administration's Risk Sharing Program, wherein the risk of loss is shared by HUD and HDC in the ratio of 90% and 10%, respectively. The mortgage note balances outstanding at the beginning of the year are included in the federal expenditures presented on the schedule. The balances of the mortgage notes outstanding at June 30, 2022 aggregated $32,589,460.
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 the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: Division Housing Corporation has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
The accompanying schedule of expenditures of federal awards includes the federal award activity of Division Housing Corporation, FHA # 012-98010, and is presented on the accrual basis of accounting. 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 Division Housing Corporation, it is not intended to and does not present the statement of financial position as of June 30, 2022, and the related statements of activities, changes in net assets, and cash flows of Division Housing Corporation.