Audit 1141

Accounting Policies: Note A – Basis of Presentation The accompanying schedule of expenditures of federal awards includes the federal grant activity of Apple Grove Homes, Inc. HUD Project 042-EH426-CMI under programs of the federal government for the year ended June 30, 2023 in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule only presents a selected portion of the operations of Apple Grove Homes, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Apple Grove Homes, Inc. Note B – 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 allowed or are limited as to reimbursement. Apple Grove Homes, Inc. has elected not to use the 10 percent de minimus indirect cost rate as allowed under Uniform Guidance. *Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A- 122 Cost Principles for Non-Profit Organizations, or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowed or are limited as to reimbursement De Minimis Rate Used: N Rate Explanation: Note B – 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 allowed or are limited as to reimbursement. Apple Grove Homes, Inc. has elected not to use the 10 percent de minimus indirect cost rate as allowed under Uniform Guidance. *Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A- 122 Cost Principles for Non-Profit Organizations, or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowed or are limited as to reimbursement.