Notes to SEFA
Title: Loan/loan guarantee outstanding balances
Accounting Policies: NOTE A BASIS OF PRESENTATIONThe accompanying schedule of expenditures of federal awards includes the federal grantactivity of, HUD Project No. 065-EH086-L8, and is presented on the accrual basis ofaccounting. The information in this schedule is presented in accordance withrequirements of Title 2 U.S. Code of Federal Regulations, Part 200, UniformAdministrative Requirements, Cost Principles, and Audit Requirements for FederalAwards (Uniform Guidance). Therefore, some amounts presented in this schedule maydiffer from amounts presented in, or used in the preparation of, the basic financialstatements. Because the Schedule presents only a selected portion of the operations ofN.C.B.A. Estates, it is not intended to and does not present the financial position, changesin net assets, or cash flows of the Entity.NOTE B SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reported on the Schedule are reported on the accrual basis of accounting.Such expenditures are recognized following the cost principles contained in the UniformGuidance, wherein certain types of expenditures are not allowable or are limited as toreimbursement.NOTE C U.S. DEPARTMENT OF HOUSING AND URBAN DELVELOPMENT LOANPROGRAMN.C.B.A. Estates has a U.S. Department of Housing and Urban Development (HUD)direct loan under Section 202 of the National Housing Act. In addition, the Project has aHUD insured loan under Section 207/223(f) of the National Housing Act. The loanbalances outstanding at the beginning of the year are included in the federal expenditurespresented in the schedule. The balances of the loans outstanding at June 30, 2022 consistof:Section 207/223(f) Insured Loan. CFDA# 14.155 $ 2,880,379; Section 202 Direct Loan. CFDA #14.157 $566,923. Total outstanding balance at June 30, 2022: $3,447,302
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 566923. MORTGAGE INSURANCE FOR THE PURCHASE OR REFINANCING OF EXISTING MULTIFAMILY HOUSING PROJECTS (14.155) - Balances outstanding at the end of the audit period were 2880379.