Audit 304427

Accounting Policies: NOTE A – BASIS OF PRESENTATION The schedule of expenditures of federal awards includes the federal grant activity of Housing Resources Bainbridge 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). The schedule of expenditures of federal awards is not intended to and does not present the financial position, activities or cash flows of Housing Resources Bainbridge. NOTE B – SUMMARY OF SIGNIFICANT 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. Housing Resources Bainbridge has elected not to use the 10% de minimis indirect cost rate. NOTE C – LOANS WITH CONTINUING COMPLIANCE REQUIREMENTS Housing Resources Bainbridge received the following funding through a loan from the U.S. Department of Housing and Urban Development which requires compliance with program requirements until the maturity date of the loan. As required by the Uniform Guidance, the beginning balance of the loan is included in the accompanying schedule of expenditures of federal awards. The balance of the loan as of December 31, 2023 is as follows Loan Contract Number Outstanding Balance HOME Investment Partnership Program Passed through State of Washington Janet West Home 00-40499-261 $ 303,252 Self-Help Homeownership Opportunity Program (SHOP) Passed through Community Frameworks Wallace Cottages HRB-21-1 $ 15,000 HOUSING RESOURCES BAINBRIDGE Notes to the Schedule of Expenditures of Federal Awards For the Year Ended December 31, 2023 21 NOTE D – GRANTS WITH CONTINUING COMPLIANCE REQUIREMENTS Housing Resources Bainbridge received the following funding through grants from the U.S. Department of Housing and Urban Development which require compliance with program requirements until the period of affordability expires. The following grants have been recognized as net assets without donor restrictions in prior years. The grant balances currently in the period of affordability at December 31, 2023 included in the accompanying schedule of expenditures of federal awards are as follows Contract Date Period of Original Grants Number Affordability Expires Grant Amount Community Development Block Grant Passed through Kitsap County Island Home KC-220-20 December 2035 $ 249,296 HOME Investment Partnership Program Passed through Kitsap County Janet West Home KC-234-00 December 2024 274,481 Janet West Home KC-221-03 December 2024 135,000 Island Home KC-464-07 December 2027 225,000 Ferncliff Village Development KC-272-10 September 2028 560,397 Ferncliff Village Development KC-433-16 December 2028 120,000 Ferncliff Village Development KC-044-18 September 2032 172,194 $ 1,736,368 De Minimis Rate Used: N Rate Explanation: Housing Resources Bainbridge has elected not to use the 10% de minimis indirect cost rate.