Audit 303283

Title: Capital Advance Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (Schedule) presents the activity of all federal financial assistance programs of Crawford Commons Apartments, Inc. (the Organization). 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). Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in preparation of, the basic financial statements. The accompanying Schedule is presented using the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: The Organization has not elected to use the 10% de minimis indirect cost rate as allowed in the Uniform Guidance, Section 414. The Organization has a Capital Advance from HUD in the amount of $2,004,400 for the costs of the building. This Capital Advance does not have to be paid back to HUD under the stipulation that the Organization rents only to qualified tenants, as defined by HUD, until October 2044.