Audit 304412

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. expenditures are not allowable or are limited as to reimbursement De Minimis Rate Used: N Rate Explanation: The auditee elected not to use the de minimis cost rate The accompanying schedule of expenditures of federal awards includes the federal grant activity of Metcalfe Garden Apartments, RD Case No. 28-076-640656034, and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with 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 this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Because the Schedule presents only a selected portion of the operations of Metcalfe Garden Apartments, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Entity.

Title: NOTE B SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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. expenditures are not allowable or are limited as to reimbursement De Minimis Rate Used: N Rate Explanation: The auditee elected not to use the de minimis cost rate 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.

Title: NOTE C U.S. DEPARTMENT OF AGRICULTURE RURAL RENTAL HOUSING LOAN 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. expenditures are not allowable or are limited as to reimbursement De Minimis Rate Used: N Rate Explanation: The auditee elected not to use the de minimis cost rate Metcalfe Garden Apartments has received a U.S. Department of Agriculture Rural Rental Housing loan. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. Metcalfe Garden Apartments received no additional loans during the year. The balance of the loan outstanding at December 31, 2023 consists of: Program Name Rural Rental Housing Loan CFDA Number 10.415 Outstanding Balance at December 31, 2023 $ 619,131