Notes to SEFA
Title: Basis of Presentation
Accounting Policies: For purposes of the Schedule, expenditures of federal award programs are recognized on the accrual basis of accounting.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate. For the year ended June 30, 2022, Assisi did not elect to use the 10% De Minimus Indirect Cost Rate permitted by Uniform Guidance as a negotiated indirect cost rate existed on all grants where indirect costs are applicable.
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Assisi Village, Inc. (Assisi) under programs of the federal government for the year ended June 30, 2022. The amounts reported as federal expenditures were obtained from Assisi's general ledger. Because the Schedule presents only a selected portion of the operations of Assisi, it is not intended to, and does not, present the financial position, results of operations, changes in net assets, and cash flows of Assisi. For purposes of the Schedule, federal expenditures include all grants, contracts, and similar agreements entered into directly between Assisi, the agencies and departments of the federal government, and all sub awards to Assisi by nonfederal organizations pursuant to federal grants, contracts, and similar agreements. The information in the Schedule is presented in accordance with the provisions of the audit 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).
Title: Insured Mortgage Program
Accounting Policies: For purposes of the Schedule, expenditures of federal award programs are recognized on the accrual basis of accounting.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate. For the year ended June 30, 2022, Assisi did not elect to use the 10% De Minimus Indirect Cost Rate permitted by Uniform Guidance as a negotiated indirect cost rate existed on all grants where indirect costs are applicable.
Under the U.S. Department of Housing and Urban Developments (HUD) Capital Advance Program, Assisi has an outstanding mortgage note held by HUD in the original amount of $3,155,200 with a maturity date of December 31, 2034. The note bears no interest and repayment by Assisi is not required as long as the related housing provided by Assisi remains available for low-income elderly persons and as long as there is no default under the note, mortgage, or regulatory agreements that Assisi has with HUD. Should default occur, HUD, at its option as the holder of the note, could call the entire principal sum without notice, and interest at an annual rate of 6.625% would be payable on demand. The principal amount is being amortized over the life of the loan using the effective-interest method. The unamortized balance of the note totaled $1,909,552 at June 30, 2022 and is recorded as net assets with donor restrictions until the maturity of the note.