Audit 303711

Title: NOTE A – Basis of Presentation Accounting Policies: 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. Fairmount Plaza, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Fairmount Plaza, 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 includes the federal award activity of Fairmount Plaza, Inc. 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 Fairmount Plaza, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Fairmount Plaza, Inc.

Title: NOTE C – U.S. 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 the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Fairmount Plaza, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Fairmount Plaza, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Fairmount Plaza, Inc. has received a U.S. Department of Housing and Urban Development insured loan under Section 202 Capital Advance of the National Housing Act. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. Fairmount Plaza, Inc. received no additional loans during the year. The balance of the loan outstanding at December 31, 2023 consists of: Federal Assistance Listing Number - 14.157; Program Name - Supportive Housing for the Elderly Section 202 Capital Advance; Outstanding Balance at December 31 2023 - $4047700