Audit 28547

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 Hereford Apartments (a Texas Non-Profit Corporation) HUD Project No. 115-EH165-L8-WAH 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 Hereford Apartments (a Texas Non-Profit Corporation), it is not intended to and does not present the financial position, changes in net assets, or cash flows of Hereford Apartments (a Texas Non-Profit Corporation).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. Hereford Apartments (a Texas Non-Profit Corporation) had elected not to use the 10-percent de minimis indirect cost rate allowed under Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. NOTE B-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures 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. Hereford Apartments (a Texas Non-Profit Corporation) had elected not to use the 10-percent de minimis indirect cost rate allowed under Uniform Guidance. SUPPORTIVE HOUSING FOR THE ELDERLY (14.157) - Balances outstanding at the end of the audit period were 878514.