Audit 302760

Title: Basis of presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in OMB Circular A-122, "Cost Principles for Non-Profit Organizations". and/or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: HCS Houston House, Inc. 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 ("Schedule") includes the federal award activity of HCS Houston House, Inc., HUD Project No. TX59M000128, 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 HCS Houston House, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of HCS Houston House, Inc. For the year ended December 31, 2023, no awards were passed through to subrecipients.

Title: United States Department of Housing and Urban Development Loan Program Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in OMB Circular A-122, "Cost Principles for Non-Profit Organizations". and/or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: HCS Houston House, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The Corporation has received a United States Department of Housing and Urban Development pass through program from the Texas Department of Housing and Community Affairs HOME Investment Partnership Program. The loan balance outstanding at the end of the year is included in the federal expenditure presented in the above Schedule. The Corporation received no additional loans during the year. The balance of the loan outstanding at December 31, 2023 consists of: Federal Assistance Listing Number Program Name Outstanding Loan Balance at December 31, 2023 14.239 Home Investment Partnerships Program (TDHCA) $ 1,823,292