Notes to SEFA
Title: BASIS OF PRESENTATION
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.
De Minimis Rate Used: N
Rate Explanation: Vernon Senior
Citizens Housing Development Corporation has elected not to use the 10-percent de minimis indirect
cost rate allowed under the Uniform Guidance.
The accompanying schedule of expenditures of federal awards includes the federal grant activity of
Vernon Senior Citizens Housing Development Corporation, operating as Sunshine Center Apartments,
HUD Project No. 064-11138, and is presented on the accrual basis of accounting. 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 Vernon Senior Citizens Housing Development Corporation, it is not intended to and does
not present the financial position, changes in net assets, or cash flows of Vernon Senior Citizens
Housing Development Corporation.
Title: U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT REFINANCE LOAN
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.
De Minimis Rate Used: N
Rate Explanation: Vernon Senior
Citizens Housing Development Corporation has elected not to use the 10-percent de minimis indirect
cost rate allowed under the Uniform Guidance.
Vernon Senior Citizens Housing Development Corporation received a HUD mortgage insurance for the
refinancing of existing multifamily housing projects under Section 207 of the National Housing Act. The
loan balance outstanding at the beginning of the year is included in the federal expenditures presented
in the Schedule. Vernon Senior Citizens Housing Development Corporation received no additional loans
during the year. The balance of the loan outstanding as of March 31, 2023 was $1,215,126.