Audit 305149

Title: Capital Advance Accounting Policies: The schedule of expenditures of federal awards (the schedule) includes the federal grant activity of the Project under programs of the federal government for the year ended December 31, 2023. 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 the Project, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Project. 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 limited as to reimbursement. FCC’s Butler County Housing Development 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: FCC’s Butler County Housing Development has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. For purposes of presentation on the schedule, the Uniform Guidance requires that the balance of the Section 811 capital advance be included for each of the 40 years through which continuing compliance requirements must be met (2051). For purposes of presentation on the Project’s financial statements, this balance is reported as net assets with donor restrictions.