Audit 303203

Title: U.S. Department of Housing and Urban Development Loan Programs Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal grant activity of Housing Channel, Inc. (Housing Channel) 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 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 Channel, it is not intended to and does not present the financial position, changes in net assets or cash flows of Housing Channel. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles in the Uniform Guidance, wherein certain types of expenditures are not allowable or limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Housing Channel has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. At September 30, 2023, Housing Channel had two interest-free loans outstanding with the Texas Department of Housing and Community Affairs and the City of Fort Worth through grants provided by the United States Department of Housing and Urban Development as presented below. The interest rate may be increased to the maximum rate permitted by the laws of the State of Texas if the property is sold before the expiration of the affordability period or if other compliance requirements are not adhered to. The loan balances at year end are included in the schedule of expenditures of federal awards.