Audit 15427

Title: Basis of presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles contained in OMB Circular A-122, "Cost Principles for Non-Profit Organizations." and 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: Y Rate Explanation: The Corporation has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards ("Schedule") includes the federal award activity of Housing for Rockdale Elders, Inc. (the “Corporation”) under programs of the federal government for the year ended October 31, 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 Housing for Rockdale Elders, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Housing for Rockdale Elders, Inc. For the year ended October 31, 2023, no awards were passed through to subrecipients.

Title: U.S. Department of Housing and Urban Development loan program Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles contained in OMB Circular A-122, "Cost Principles for Non-Profit Organizations." and 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: Y Rate Explanation: The Corporation has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The federal loan program listed below is administered directly by PNC Bank and balances and transactions relating to the program are included in the Corporation’s basic financial statements. The loan outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. Housing for Rockdale Elders, Inc. received no additional loans during the year. The balance of the loan outstanding at October 31, 2023 consists of: Federal Assistance Listing Outstanding Number Program Name October 31, 2023 14.155 Section 223 HUD-Insured Mortgage 1 ,602,235