Audit 1331

Title: Loans Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activities of G.I.S. Housing III, Inc. (the Project), HUD Project No. 067-EH272 FL 29-T871-033, under programs of the federal government for the year ended June 30, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements of 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, change in net assets, or cash flows of the Project. 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 allowable or limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Project had the following loan balance at June 30, 2023: See the Notes to the SEFA for table.