Audit 14561

Title: NOTE 1 – BASIS OF PRESENTATION Accounting Policies: The schedule of expenditures of federal awards includes the federal grant activity of Dunson School Redevelopment Corporation, HUD Project No. 061-EE145, and is presented on the accrual basis of accounting. This information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards (Uniform Guidance). De Minimis Rate Used: N Rate Explanation: N/A The schedule of expenditures of federal awards includes the federal grant activity of Dunson School Redevelopment Corporation, HUD Project No. 061-EE145, and is presented on the accrual basis accounting. This information in this schedule is presented 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). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.

Title: NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: The schedule of expenditures of federal awards includes the federal grant activity of Dunson School Redevelopment Corporation, HUD Project No. 061-EE145, and is presented on the accrual basis of accounting. This information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards (Uniform Guidance). De Minimis Rate Used: N Rate Explanation: N/A Expenditures reported on the Schedule are reported on the accrual basis of accounting. Suchexpenditures are recognized following, as applicable, the cost principles contained in OMBCircular A-122, “Cost Principles for Non-Profit Organizations” and the cost principles contained in the Uniform Guidance. Fairview Senior Housing, Inc. has elected not to use the 10 percent de minimus indirect cost rate as allowed under the Uniform Guidance.

Title: NOTE 3 – CAPITAL ADVANCE PROGRAM Accounting Policies: The schedule of expenditures of federal awards includes the federal grant activity of Dunson School Redevelopment Corporation, HUD Project No. 061-EE145, and is presented on the accrual basis of accounting. This information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards (Uniform Guidance). De Minimis Rate Used: N Rate Explanation: N/A Dunson School Redevelopment Corporation has received a capital grant advances under the U.S. Department of Housing and Urban Development’s Supportive Housing for the Elderly Section 202 Capital Advance Program. The capital advance is treated as a loan program for reporting federal expenditures. The capital advance in the original amount of $3,262,000 was originally issued on October 22, 2009, not in the current year. Refer to Note 5 in the Notes to the Financial Statements for additional disclosures regarding the capital advance. The balance of the capital advance outstanding at June 30, 2023 was $3,262,000.