Notes to SEFA
Title: Note 3 - Loan
Accounting Policies: Note 1 - Basis of Presentation
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity
of Counterpoint Commons (the Organization) under programs of the federal government for the year ended June
30, 2023. 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 selected portion of the operations of
the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash
flows of the Organization.
Note 2 - Summary of Significant 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 Uniform Guidance, wherein certain types of expenditures
are not allowable or are limited as to reimbursement. The Organization has not elected to use the de minimis
indirect rate allowed under the Uniform Guidance as the Schedule only includes forgivable loans and project
rental assistance, which are not subject to indirect cost recoveries.
De Minimis Rate Used: N
Rate Explanation: The Organization has not elected to use the de minimis
indirect rate allowed under the Uniform Guidance as the Schedule only includes forgivable loans and project
rental assistance, which are not subject to indirect cost recoveries.
In accordance with the Uniform Guidance, included in the Schedule is a Section 811 loan payable to the US
Department of Housing and Urban Development (HUD) which will be forgiven upon maturity, April 2036, if
continuing use requirements are met. The loan’s HUD Regulatory Agreement contains use requirements which
restrict use of the property to providing housing to individuals who have very low income and who have
disabilities, as defined by HUD. The outstanding balance of the Section 811 loan was $760,500 as of June 30,
2023.