Audit 297191

Title: BASIS OF PRESENTATION Accounting Policies: 1. 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. 2. Expenditures for the Section 8 Housing Assistance Payments are reported on a statutory basis as required by the U.S. Department of Housing and Urban Development. For subsidy programs, federal awards expended would equal the net ACC subsidy for the PHA’s fiscal period under audit. 3. The accompanying Schedule of Expenditures of Federal Awards is prepared from the Project’s accounting records and is not intended to present financial position or the results of operations. De Minimis Rate Used: N Rate Explanation: Valle Verde Housing has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards includes the federal award activity of the Project 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 of Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Valle Verde Housing, it is not intended to and does not present the financial position, changes in the net assets, or cash flows of Valle Verde Housing.

Title: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: 1. 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. 2. Expenditures for the Section 8 Housing Assistance Payments are reported on a statutory basis as required by the U.S. Department of Housing and Urban Development. For subsidy programs, federal awards expended would equal the net ACC subsidy for the PHA’s fiscal period under audit. 3. The accompanying Schedule of Expenditures of Federal Awards is prepared from the Project’s accounting records and is not intended to present financial position or the results of operations. De Minimis Rate Used: N Rate Explanation: Valle Verde Housing has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. 1. 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. 2. Expenditures for the Section 8 Housing Assistance Payments are reported on a statutory basis as required by the U.S. Department of Housing and Urban Development. For subsidy programs, federal awards expended would equal the net ACC subsidy for the PHA’s fiscal period under audit. 3. The accompanying Schedule of Expenditures of Federal Awards is prepared from the Project’s accounting records and is not intended to present financial position or the results of operations.

Title: INDIRECT COST RATE Accounting Policies: 1. 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. 2. Expenditures for the Section 8 Housing Assistance Payments are reported on a statutory basis as required by the U.S. Department of Housing and Urban Development. For subsidy programs, federal awards expended would equal the net ACC subsidy for the PHA’s fiscal period under audit. 3. The accompanying Schedule of Expenditures of Federal Awards is prepared from the Project’s accounting records and is not intended to present financial position or the results of operations. De Minimis Rate Used: N Rate Explanation: Valle Verde Housing has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Valle Verde Housing has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.

Title: FEDERAL ASSISTANCE NUMBER Accounting Policies: 1. 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. 2. Expenditures for the Section 8 Housing Assistance Payments are reported on a statutory basis as required by the U.S. Department of Housing and Urban Development. For subsidy programs, federal awards expended would equal the net ACC subsidy for the PHA’s fiscal period under audit. 3. The accompanying Schedule of Expenditures of Federal Awards is prepared from the Project’s accounting records and is not intended to present financial position or the results of operations. De Minimis Rate Used: N Rate Explanation: Valle Verde Housing has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The Federal Assistance Number is a five-digit number assigned in the awarding document for all federal assistance award mechanisms, including federal grants and cooperative agreements. The first two digits reflect the major federal agency, and the final three digits following the decimal indicate the federal program funding the project. Assistance listings are detailed public descriptions of federal programs that provide grants, loans, scholarships, insurance, and other types of assistance awards.

Title: SCHEDULE NOT IN AGREEMENT WITH OTHER FEDERAL AWARD REPORTING Accounting Policies: 1. 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. 2. Expenditures for the Section 8 Housing Assistance Payments are reported on a statutory basis as required by the U.S. Department of Housing and Urban Development. For subsidy programs, federal awards expended would equal the net ACC subsidy for the PHA’s fiscal period under audit. 3. The accompanying Schedule of Expenditures of Federal Awards is prepared from the Project’s accounting records and is not intended to present financial position or the results of operations. De Minimis Rate Used: N Rate Explanation: Valle Verde Housing has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The information included in the schedule may not fully agree with other federal award reports submitted directly to federal granting agencies.