Audit 17184

Title: U.S. Department of Housing and Urban Development loan program Accounting Policies: The accompanying schedule of expenditures of federal awards ("Schedule") includes the federal award activity of Second Saint Marys Housing Corporation, HUD Project No. 051-11175, under programs of the federal government for the year ended December 31, 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 Second Saint Marys Housing Corporation, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Second Saint Marys Housing Corporation. For the year ended December 31, 2022, no awards were passed through to subrecipients. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, 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: Second Saint Mary's Housing Corporation has elected not to use the 10-percent de minimis indirectcost rate allowed under the Uniform Guidance. Second Saint Marys Housing Corporation has received a loan which was insured by the U.S. Department of Housing and Urban Development under Section 202/223 (f) of the National Housing Act. During 2022, the Corporation received approval from HUD to prepay the outstanding loan under Section 202 and as of December 31, 2022, the loan was repaid in full. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. Second Saint Marys Housing Corporation received no additional HUD loans during the year.