Audit 2

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, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Mansfield Retirement Community, Inc. did not recover its indirect costs using the 10 percent de minimis indirect cost rate allowed under Section 200.414 of the Uniform Guidance. award activity of Mansfield Retirement Community, Inc., HUD Project No. 017-11086, under programs of the federal government for the fiscal year ended June 30, 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 Mansfield Retirement Community, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Mansfield Retirement Community, Inc.

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 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: Mansfield Retirement Community, Inc. did not recover its indirect costs using the 10 percent de minimis indirect cost rate allowed under Section 200.414 of the Uniform Guidance. Mansfield Retirement Community, Inc. has received a U.S. Department of Housing and Urban Development loan guarantee under Section 223(f) of the National Housing Act. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. Mansfield Retirement Community, Inc. received no additional loans during the year. The balance of the loan outstanding at June 30, 2023 consists of: CFDA Number 14.155; Program Name Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Projects; Outstanding Balance at June 30, 2023 $2,318,188