Notes to SEFA
Title: NOTE 3 - U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT LOAN PROGRAM
Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of Tushim Manor, Inc., HUD Project No. 033 EE110, 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 Schedule presents only a select portion of the operations of Tushim Manor, Inc., it is not intended to and does not present the financial position, changes in net assets (deficit), or cash flows of Tushim Manor, Inc.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.
HUD has made a Section 202 Capital Advance to Tushim Manor, Inc., for the purpose of funding the major portion of the cost of the apartment complex. The total amount of the advance is $ 2,276,900 at December 31, 2022. No interest or repayment of the advance is required as long as the Organization operates the apartment complex for very low-income elderly persons for not less than 40 years from September 30, 2002. Until August 1, 2043, the Section 202 Capital Advance will continue to be reported on the Schedule as a major program for the full amount of the advance.