Audit 10040

Title: Basis of Presentation Accounting Policies: Expenditure reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), wherein certain types of expenditure are not allowable or are limited as to reimbursement. Pass-through entity identifying number are presented where available. The entity has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance De Minimis Rate Used: N Rate Explanation: The entity has elected not to use 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Warren Housing for the Elderly, Project No. 042-EE023 under programs of the federal government for the year ended September 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 Project, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Project.

Title: Capital Advance Accounting Policies: Expenditure reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), wherein certain types of expenditure are not allowable or are limited as to reimbursement. Pass-through entity identifying number are presented where available. The entity has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance De Minimis Rate Used: N Rate Explanation: The entity has elected not to use 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance As required by HUD, the schedule of expenditures of federal awards (SEFA) includes a capital advance that was provided and used on May 16, 1995, by the Project. The capital advance has continuing compliance requirements, therefore considered as an annual expenditure. The value of the expenditure is the total amount advanced and utilized by the Project. The capital advance agreement requires the owner to maintain the project for 40 years.