Audit 20417

Title: Loan/loan guarantee outstanding balances Accounting Policies: (1) Basis of PresentationThe accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes thefederal award activity of New Strides, Inc. (the Organization), a nonprofit organization asdefined in Note (1) to the Organizations financial statements, under programs of the federalgovernment for the year ended December 31, 2022. The information in this Schedule ispresented in accordance with the requirement of Title 2 U.S. Code of Federal Regulations Part200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for FederalAwards (Uniform Guidance). Because the Schedule presents only a selected portion of theoperations of the Organization, it is not intended to and does not present the financial position,changes in net assets, functional expenses or cash flows of the Organization.(2) Basis of AccountingExpenditures reported on the Schedule are reported on the modified accrual basis ofaccounting. Such expenditures are recognized following the cost principles contained in theUniform Guidance, wherein certain types of expenditures are not allowable or are limited as toreimbursement.Pass-through numbers are presented where available.The amounts reported as federal expenditures were obtained from the federal financial reportsfor the applicable program and periods. The amounts reported in these reports are preparedfrom records maintained for each program, which are reconciled with the Organizationsfinancial reporting system.(3) Indirect CostsThe Organization has elected not to use the 10% de minimis indirect cost rate allowed under theUniform Guidance.(4) Loans - Capital AdvanceOn January 2, 1998, the Organization entered into a capital advance program regulatoryagreement with the U.S. Department of Housing and Urban Development (HUD) with respectto the acquisition of four properties in Suffolk County for $1,275,500. The capital advance fromHUD was provided under Section 811 of the Cranston-Gonzalez National Affordable HousingAct; HUD holds a 40-year non-interest bearing mortgage on the properties. The Organization isnot required to repay the principal or pay interest and the mortgage note will be forgiven atmaturity, as long as the housing remains available to low income persons with disabilities for aperiod of 40 years in accordance with Section 811 program and HUD requirements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES (14.181) - Balances outstanding at the end of the audit period were 1275500.