Audit 13610

Title: U.S DEPARTMENT OF AGRICULTURE LOAN PROGRAM Accounting Policies: Note 1 - Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of Sharon Ridge Expansion Corporation, RD Project No. 06-003-324142678-011, under programs of the federal government for the fiscal year ended June 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 Sharon Ridge Expansion Corporation, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Sharon Ridge Expansion Corporation 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 the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Sharon Ridge Expansion Corporation did not recover its indirect costs using the 10 percent de minimis indirect cost rate allowed under Section 200.414 of the Uniform Guidance. Sharon Ridge Expansion Corporation has received a U.S. Department of Agriculture rural rental housing loan. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. Sharon Ridge Expansion Corporation received no additional loans during the year. The balance of the loan outstanding at June 30, 2023 consists of: Federal Assistance Outstanding Balance Listing Number Program Name at June 30, 2023 10.415 Rural Rental Housing Loans $ 924,588