Audit 299261

Title: NOTE A - BASIS OF PRESENATION Accounting Policies: NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the Schedule are reported on accounting principles generally accepted in the United States of America (accrual basis). Such expenditures are recognized following the cost principles contained in the Uniform Guidance and/or 0MB Circular A-87, Cost Principles for State, Local, and Indian Tribal Governments wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: NOTE C - INDIRECT COST RA TE Combs-Redfern Apartments, Inc. has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal activity of Combs-Redfern Apartments, Inc., HUD Project No. 084- Hd074/MOI6-QI0I-004 under programs of the federal government for the year ended December 31, 2023. 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 Combs-Redfern Apartments, Inc. it is not intended to and does not present the financial position, changes in net position, or cash flows of Combs-Redfern Apartments, Inc.

Title: NOTE D - FEDERAL LOAN Accounting Policies: NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the Schedule are reported on accounting principles generally accepted in the United States of America (accrual basis). Such expenditures are recognized following the cost principles contained in the Uniform Guidance and/or 0MB Circular A-87, Cost Principles for State, Local, and Indian Tribal Governments wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: NOTE C - INDIRECT COST RA TE Combs-Redfern Apartments, Inc. has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. In prior years Combs-Redfern Apartments, Inc. received a loan for construction of the fourteen-unit apartments. So long as they follow HUD guidelines and only rent to the disabled no principal payment is due nor interest accrues on the loan.