Title: Loan/loan guarantee outstanding balances
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, Cost Principles for Nonprofit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Hope Network and Affiliates has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
In accordance with Uniform Guidance, loans, loan guarantees and capital advances are presented on the accompanying Schedule of Federal Awards at balances outstanding as of October 1, 2021. Following is the balance of the loan, loan guarantees, capital grants and capital advances as of September 30, 2022:SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES (14.181) - Balances outstanding at the end of the audit period were 7565300. MORTGAGE INSURANCE FOR THE PURCHASE OR REFINANCING OF EXISTING MULTIFAMILY HOUSING PROJECTS (14.155) - Balances outstanding at the end of the audit period were 2833177. MORTGAGE INSURANCE_RENTAL AND COOPERATIVE HOUSING FOR MODERATE INCOME FAMILIES AND ELDERLY, MARKET INTEREST RATE (14.135) - Balances outstanding at the end of the audit period were 2642763. HOME INVESTMENT PARTNERSHIPS PROGRAM (14.239) - Balances outstanding at the end of the audit period were 314996.
Title: Basis of Presentation
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, Cost Principles for Nonprofit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Hope Network and Affiliates has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant award activity of Hope Network and Affiliates under programs of the federal government for the year ended September 30, 2022. 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 Hope Network and Affiliates, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Hope Network and Affiliates.
Title: Program Audits of Related Entities
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, Cost Principles for Nonprofit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Hope Network and Affiliates has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
In accordance with U.S. Department of Housing and Urban Development requirements, the following entity has been subject to a program-specific compliance audit as of December 31, 2022: VOK LDHA LP (Village of Kalamazoo Limited Dividend Housing Association Limited Partnership). In accordance with Michigan State Housing Development Authority requirements, the following entities have been subject to a program-specific compliance audit as of December 31, 2022: Brentwood Limited Dividend Housing Association Limited Partnership and Wellington Limited Dividend Housing Association Limited Partnership.
Title: Related Entities
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, Cost Principles for Nonprofit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Hope Network and Affiliates has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The accompanying Schedule of Expenditures of Federal Awards reports activity for HopeNetwork and Affiliates (collectively, the Network) and includes the federal funds of serviceaffiliates and housing affiliates.Service affiliates include those affiliates that provide some level of human services toconsumers in the conduct of their respective programs and affiliates that provide support orfundraising for those services. The service affiliates include the accounts of Hope Network WestMichigan (HN West Michigan); Hope Network Behavioral Health (HNBHS or HN BehavioralHealth); Hope Network Rehabilitation Services d/b/a Hope Network Neuro Rehabilitation (HNNeuro Rehab); Alternative Community Living, Inc. (New Passages); Hope Network Southeast(HN Southeast); Hope Network Services Corporation (Services Corp); Hope NetworkFoundation (Foundation); Hope Network Recovery (HN Recovery); Hope Network (alsoreferred to as HN Leadership Center); Homes of Opportunity (HOO); and Hope NetworkNeuro Rehab Lansing (HN Neuro Rehab-Lansing). Housing affiliates are those affiliates that own real estate and provide limited human servicesconnected to the real estate operations. Typically, these affiliates have U.S. Department ofHousing and Urban Development (HUD) or Michigan State Housing Development Authority(MSHDA) loans, grants or subsidies that aid in their operation. The housing affiliates include:Hillview Townhouses, Inc. (Hillview Townhouses); Courtland Housing Corporation(Courtland); Brentwood NPHC (Brentwood); Wellington NPHC (Wellington Court); MAHC III(Leonard Pines); MAHC IV (Village Drive); MAHC II (Walker Village); Birchgrove Non ProfitHousing Corporation (Birchgrove); Metropolitan Alternative Housing Corporation (MetropolitanApartments); Three Rivers Alternative Housing Corporation (River Country); KalamazooNPHC (Milham Parkside); Big Rapids NPHC; (Water Tower Place); Twin Lakes NPHC (TwinLakes); Masquignon NPHC (Masquignon); Hill House Apartments, Inc. (Hill House); BattleCreek NPHC (The Meadows); Synergy Non-Profit Housing Corporation (Synergy); GainesNPHC (Gaines); Housing Plus; Carlton NPHC (Carlton); VOK Limited Dividend HousingAssociation LLC (Village of Kalamazoo); Hope Network Affordable Independent Living NPHC(HNAIL); Hope Network Housing Development Corporation (HNHDC); Brentwood LimitedDividend Housing Association Limited Partnership, Wellington Limited Dividend HousingAssociation Limited Partnership and Hope Network Cadillac Limited Dividend HousingAssociation LLC.