Audit 14509

Title: Note 4 - Loan and Loan Guarantee Programs Accounting Policies: NOTE 1 – BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Ayer Elderly Housing Partnership, Inc., under programs of the federal government for the year ended June 30, 2023. The information in the schedule is presented in accordance with the requirements of the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirement, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of Ayer Elderly Housing Partnership, Inc., it is not intended to and does not present the financial position, changes in net deficit or cash flows of Ayer Elderly Housing Partnership, Inc. NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the schedule are reported on the accrual basis of accounting. For cost-reimbursement awards, 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. For performance-based awards, expenditures reported represent amounts earned. De Minimis Rate Used: N Rate Explanation: NOTE 3 – INDIRECT COST RATE The Ayer Elderly Housing Partnership, Inc. has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The Organization has a capital advance from the Department of Housing and Urban Development in the amount of $3,465,200 under the Section 202 Supportive Housing for the Elderly Program. The balance of the capital advance at the beginning of the year is included in the Schedule of Expenditures of Federal Awards.