Audit 301721

Title: Loan/Loan Guarantee Outstanding Balances Accounting Policies: This schedule of expenditures of federal awards includes the federal award activity of Ponderosa Apartments, Inc. 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 (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in preparation of the basic financial statements. De Minimis Rate Used: N Rate Explanation: Ponderosa Apartments, Inc. did not elect to use the 10% de minimis indirect cost rate. The balance of the Rural Rental Housing federal loans outstanding as of September 30, 2023 amount to $5,290,869. The amount presented on the schedule for MPR loan funds represents loan proceeds received as of September 30, 2023. The MPR loans began repayment during 2023. The balance of the MPR federal loans outstanding as of September 30, 2023 amount to $11,729,665.

Title: Subrecipients Accounting Policies: This schedule of expenditures of federal awards includes the federal award activity of Ponderosa Apartments, Inc. 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 (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in preparation of the basic financial statements. De Minimis Rate Used: N Rate Explanation: Ponderosa Apartments, Inc. did not elect to use the 10% de minimis indirect cost rate. There were no awards passed through to subrecipients.