Notes to SEFA
Accounting Policies: 1. BASIS OF PRESENTATIONThe accompanying schedule of expenditures of federal awards (the Schedule)includes the federal award activity of River Heights Apartments, Inc. under programsof the federal government for the year ended November 30, 2022. The information inthis Schedule is presented in accordance with the requirements of Title 2 U.S. Codeof Federal Regulations Part 200, Uniform Administrative Requirements, CostPrinciples, and Audit Requirements for Federal Awards (Uniform Guidance). Becausethe Schedule presents only a selected portion of the operations of River HeightsApartments, Inc., it is not intended to and does not present the financial position,changes in net assets, or cash flows of River Heights Apartments, Inc.2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(1) Expenditures reported on the Schedule are reported on the accrual basis ofaccounting. Such expenditures are recognized following the cost principles containedin the Uniform Guidance, wherein certain types of expenditures are not allowable orare limited as to reimbursement.(2) River Heights Apartments, Inc. has elected not to use the 10 percent de minimisindirect cost rate as allowed under the Uniform Guidance.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.