Audit 10869

Title: Basis of presentation Accounting Policies: Expenditures reported in the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards and OMB Circular A-122 Cost Principles for Non-Profit Organizations; wherein certain types of expenditures are not allowed. Assistance Listing numbers (“AL No.”) are provided when available. De Minimis Rate Used: Y Rate Explanation: The Organization has elected to use the de minimis rate of 10% of modified total direct costs as an indirect cost allocation factor, as allowed under 2C.F.R. §200.414. The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the expenditures of Villa Teresa, Inc. (a New Mexico non-profit public benefit corporation) under programs of the federal government for the year ended September 30, 2023. The information in the Schedule is presented in accordance with the requirements of Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards. Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of the basic financial statements. For purposes of the Schedule, federal awards include all sub awards to the Organization by nonfederal organizations pursuant to federal grants, contract and similar agreements.

Title: Outstanding federal loans Accounting Policies: Expenditures reported in the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards and OMB Circular A-122 Cost Principles for Non-Profit Organizations; wherein certain types of expenditures are not allowed. Assistance Listing numbers (“AL No.”) are provided when available. De Minimis Rate Used: Y Rate Explanation: The Organization has elected to use the de minimis rate of 10% of modified total direct costs as an indirect cost allocation factor, as allowed under 2C.F.R. §200.414. The following represents the amount of outstanding loans identified by AL No. All loans are provided by HUD and are included in the Schedule. AL No. Program title Total outstanding loan 14.155 Section 207 pursuant to 223(f) $1,759,408 Insured Loan Program