Audit 303584

Accounting Policies: Basis of presentation The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the expenditures of Paces St. Mary, LLC (a single member LLC) under programs of the federal government for the year ended December 31, 2023. The information in the Schedule is presented in accordance with the requirements of 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 the preparation of the basic financial statements. For purposes of the Schedule, federal awards include all sub awards to the Company by nonfederal organizations pursuant to federal grants, contracts and similar agreements. Summary of significant accounting policies Basis of accounting Expenditures reported in the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowed. Assistance Listing numbers are provided when available. Federal indirect cost rate The Company elected not to use the 10% de minimis indirect cost rate as allowed under Uniform Guidance. Outstanding federal loans The Company received a loan under the Multifamily Assisted Housing Reform and Affordability Act of 1997 mark-to-market program. The outstanding loan balance at the end of the audit period is included in the federal expenditures in the Schedule. The Company received no additional loans during the year. As of December 31, 2023, the balance outstanding was $44,025,000. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.