Audit 302770

Title: Loan and Loan Guarantee Programs Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of N.M. Carroll Manor, Inc. (the Organization) 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 the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization. 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. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The Organization entered into a loan guarantee agreement with the U.S. Department of Housing and Urban Development (HUD) for the mortgage on the property. The balance of the loan outstanding as of June 30, 2023 was $3,298,441. In prior years the Organization received grants in the amount of $7,172,168 to fund the building of their assisted living facility. The amount of the original grants are included in the federal expenditures presented in the Schedule.