Audit 289990

Title: 1. Summary of Significant Accounting Policies: Accounting Policies: 1. Summary of Significant Accounting Policies: Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards (SEFA) presents the activity of all federal award programs administered by Shamokin Housing Association (the Association), an entity as described in Note 1 to its financial statements. Federal awards received directly from federal agencies, as well as federal awards passed through from other governmental agencies, are included on the SEFA. Basis of Accounting The amounts reported as federal expenditures were obtained from the appropriate financial reports for the applicable programs and periods. The amounts reported in these financial reports are prepared from records maintained for the programs, which are periodically reconciled to the Association’s financial reporting system. The Association uses the accrual basis of accounting for its federal programs, consistent with the financial statements. Indirect Costs The Association’s policy is not to charge Federal programs with indirect costs unless funded in the original award notification and the Association has not elected to use the 10% de minimis cost rate. Loans Outstanding At September 30, 2023, loan balances outstanding under the Mortgage Insurance Rental Housing program totaled $483,870. De Minimis Rate Used: N Rate Explanation: The Association’s policy is not to charge Federal programs with indirect costs unless funded in the original award notification and the Association has not elected to use the 10% de minimis cost rate. Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards (SEFA) presents the activity of all federal award programs administered by Shamokin Housing Association (the Association), an entity as described in Note 1 to its financial statements. Federal awards received directly from federal agencies, as well as federal awards passed through from other governmental agencies, are included on the SEFA. Basis of Accounting The amounts reported as federal expenditures were obtained from the appropriate financial reports for the applicable programs and periods. The amounts reported in these financial reports are prepared from records maintained for the programs, which are periodically reconciled to the Association’s financial reporting system. The Association uses the accrual basis of accounting for its federal programs, consistent with the financial statements. Indirect Costs The Association’s policy is not to charge Federal programs with indirect costs unless funded in the original award notification and the Association has not elected to use the 10% de minimis cost rate. Loans Outstanding At September 30, 2023, loan balances outstanding under the Mortgage Insurance Rental Housing program totaled $483,870.