Notes to SEFA
Title: Loan/loan guarantee outstanding balances
Accounting Policies: The accompanying schedule of expenditures of federal awards (SEFA) presents the expenditures of the fiscal year ended June 30, 2022, of all the federal awards assisted programs of the Municipality of Carolina. Except for the Section 8 Housing Choice Voucher, the SEFA was prepared following the modified accrual basis of accounting, which is explained in detail in Note 1 to basic financial statements of the Municipality of Carolina, as of and for the fiscal year ended June 30, 2022. The expenses reported in the SEFA for the Section 8 Housing Choice Voucher program was prepared following the accrual basis of accounting, as required by the US Department of Housing and Urban Development, through the Real Estate Assessment Center (REAC), to be used for purposes of the schedule. Refer to Note 1 to the SEFA in the Single Audit Report, the reconciliation between the amounts reported in the SEFA and the expenditures included in the financial statements for the Section 8 Housing Choice Voucher Program.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use minimis cost rate because all costs are charged directly to the federal award, included space costs, utility costs and administrative costs, as applicable.
COMMUNITY DEVELOPMENT BLOCK GRANTS_SECTION 108 LOAN GUARANTEES (14.248) - Balances outstanding at the end of the audit period were 5736000. AS REPORTED IN NOTE 3 TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND IN NOTE 11 OF GENERAL LONG TERM DEBT FOR BASIC FINANCIAL STATEMENTS, THE OUTSTANDIDNG BALANCE AT JUNE 30, 2022 OF FEDERALLOANS AND NOTES (SECTION 108 LOAN GUARANTTES NOTES PAYABLE) WAS $5,736,000.
Title: Loan guarantee
Accounting Policies: The accompanying schedule of expenditures of federal awards (SEFA) presents the expenditures of the fiscal year ended June 30, 2022, of all the federal awards assisted programs of the Municipality of Carolina. Except for the Section 8 Housing Choice Voucher, the SEFA was prepared following the modified accrual basis of accounting, which is explained in detail in Note 1 to basic financial statements of the Municipality of Carolina, as of and for the fiscal year ended June 30, 2022. The expenses reported in the SEFA for the Section 8 Housing Choice Voucher program was prepared following the accrual basis of accounting, as required by the US Department of Housing and Urban Development, through the Real Estate Assessment Center (REAC), to be used for purposes of the schedule. Refer to Note 1 to the SEFA in the Single Audit Report, the reconciliation between the amounts reported in the SEFA and the expenditures included in the financial statements for the Section 8 Housing Choice Voucher Program.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use minimis cost rate because all costs are charged directly to the federal award, included space costs, utility costs and administrative costs, as applicable.
Refer to Note 3 to the Schedule of Expenditures of Federal Awards, which disclosed the outstanding balances of Federal Loans and Notes at June 30, 2022, which in the aggregate totalize $4,966,138. This information is also disclosed as part of Note 11 to the basic financial statements of the Municipality of Carolina.