Audit 28023

Title: Loan/loan guarantee outstanding balances Accounting Policies: The accompanying schedule of expenditures of federal awards (The "Schedule") includes the federal award activity of Friendship Home Association., 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 Friendship Home Association, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Friendship Home Association. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles in the Uniform Guidance, wherein certain types of expenditures are notallowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. COMMUNITY FACILITIES LOANS AND GRANTS (10.766) - Balances outstanding at the end of the audit period were 3122799. Friendship Home Association has received a U.S. Department of Agriculture Community Facilities Loans & Grants.The loan balance outstanding at the beginning of the audit period is included in the federal expenditures presented in the Schedule. Friendship Home Association received no additional loans during the audit period; however, accrued interest incurred during a period of loan deferment was added to the loan balance during the year ended December 31, 2022.