Audit 28425

Title: Loan/loan guarantee outstanding balances Accounting Policies: NOTE A - BASIS OF PRESENTATIONThe accompanying schedule of expenditures of federal awards includes the federal award activity of FiveSeasons Senior Housing, Inc. and is presented on the accrual basis of accounting. The information in thisschedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part200, 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 FiveSeasons Senior Housing, Inc., it is not intended to and does not present the financial position, changes innet assets, or cash flows of Five Seasons Senior Housing, Inc.NOTE B SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reported on the Schedule are reported on the accrual basis of accounting. Such expendituresare recognized following the cost principles contained in the Uniform Guidance, wherein certain types ofexpenditures are not allowable or are limited as to reimbursement. Five Seasons Senior Housing, Inc. haselected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.NOTE C U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT LOAN PROGRAMFive Seasons Senior Housing, Inc. has received a U.S. Department of Housing and Urban DevelopmentCapital Advance under Section 202 of the National Housing Act. The Capital Advance under Section 202balance outstanding at the beginning of the year is included in the federal expenditures presented in theSchedule. Five Seasons Senior Housing, Inc. received no additional Capital Advances during the year. Thebalance of the Capital Advance outstanding at December 31, 2022 consists of:CFDANumber Program NameOutstanding Balanceat December 31, 2022Supportive Housing for the ElderlyCapital Advance14.157 $ 2,753,300 De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. SUPPORTIVE HOUSING FOR THE ELDERLY (14.157) - Balances outstanding at the end of the audit period were 2753300.