Audit 301212

Title: Basis of presentation 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. Negative amounts, if any, shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: Housing Authority of the City of Des Arc has not made an election to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Housing Authority of the City of Des Arc under programs of the federal government for the year ended June 30, 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 Housing Authority of the City of Des Arc, it is not intended to and does not present the financial position, changes in net position, or cash flows of Housing Authority of the City of Des Arc.The USDA-RD loans have an outstanding balance of $823,060 at the beginning of the fiscal year. Due to the continuing compliance requirements related to these loans, the entire balance has been considered a current year federal award in accordance with Uniform Guidance. The mortgage interest subsidy of $77,938 is included in the award amount.