Audit 12767

Title: Note 3. Federally Funded Capital Advance Accounting Policies: Note 1. – Basis of Presentation: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of The Riese St. Gerard Housing Corporation, The William F. Hinchliffe Manor, HUD Project No. 031-EH221 under programs of the federal government for the year ended September 30, 2023. The information on this Schedule is prepared 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 Riese St. Gerard Housing Corporation, The William F. Hinchliffe Manor, HUD Project No. 031-EH221, it is not intended to and does not present the financial position, changes in net assets, or cash flows of The Riese St. Gerard Housing Corporation, The William F. Hinchliffe Manor, HUD Project No. 031-EH221. Note 2. – 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 Uniform Guidance, wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. During the year ended September 30, 2023. The Project did not provide any funds relating to their federal program to subrecipients. The Project 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 auditee did not use the de minimis cost rate. The capital advance balance at the beginning of the year and advances made during the year are included in the federal expenditures presented in the Schedule. The balance of the outstanding capital advance at September 30, 2023 is $2,304,400.