Audit 2357

Title: Loan/loan guarantee outstanding balances Accounting Policies: NOTE A - BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards includes the federal award activity of H.S.C. No. 6 Housing Development Fund Co., Inc., HUD Project No. 012-EE322, and is presented on the accrual basis of accounting. 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 H.S.C. No. 6 Housing Development Fund Co., Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of H.S.C. No. 6 Housing Development Fund Co., Inc. NOTE B - SUMMARY OF SIGNIFICANT 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. H.S.C. No. 6 Housing Development Fund Co., Inc. has elected not to use the 10-percent 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. NOTE C – U.S. Department of Housing and Urban Development Capital Advance Program H.S.C. No. 6 Housing Development Fund Co., Inc. has received a capital advance under Section 202 of the National Housing Act. The capital advance balance at July 31, 2023 was $3,792,200.