Notes to SEFA
Title: Loan/loan guarantee outstanding balances
Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Aeon 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 Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Such entities follow the requirements of the Consolidated Audit Guide for Audits of HUD Programs (the Guide) when required. Because the Schedule presents only a selected portion of the operations of Aeon and Affiliates, it is not intended to and does not present the financial position, changes in net position or cash flows of Aeon and Affiliates. 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. Negative amounts shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
Federal expenditures for the Community Development Block Grants/Entitlement Grants program ($2,154,000) represent the beginning of the year balances of loans outstanding from previous years for which the grantor imposes continuing compliance requirements.The previous years loan balances did not change during the year.