Notes to SEFA
Title: Loan/loan guarantee outstanding balances
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 Office of Management and Budget Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, 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.
SUPPORTIVE HOUSING FOR THE ELDERLY (14.157) - Balances outstanding at the end of the audit period were 217000.
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 Office of Management and Budget Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, 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.
The accompanying schedule of expenditures of federal awards (the schedule) includes the federal ward activity of The Meadows of Wesley Village 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). Because the Schedulepresents only a selected portion of the operations of The Meadows of Wesley Village, it is not intended to and does not present the financial position, changes in net assets, or cash flows of The Meadows of Wesley Village.
Title: Federally Funded and Insured Mortgages
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 Office of Management and Budget Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, 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.
The acquisition and construction of the Project was funded by capital advances from HUD under Section 202 of the National Housing Act of 1959. As a condition for the capital advances, the Corporation entered into the Regulatory Agreement with HUD, and executed a mortgage note payable to HUD in the amount of $2,170,100. The mortgage note bears no interest and repayment is not required so long as the Project provides housing for very low-income elderly or disabled persons in accordance with Section 202. The mortgage note matures in November, 2040 and is secured by a Deed of Trust. Provided that the housing has remained available for occupancy by eligible families until maturity and that the mortgage note has not otherwise become due by reason of default, the mortgage note shall be deemed paid and discharged at maturity in November, 2040. In the event of default, the entire principal balance plus interest at an annual rate of 7.75% shall be payable upon demand by HUD.