Audit 305285

Title: NOTE C – LOAN PROGRAM BALANCES OUTSTANDING Accounting Policies: NOTE A - BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards includes the federal award activity of Savo Island Cooperative Homes, 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 Savo Island Cooperative Homes, Inc., it is not intended to and does not present the financial position, changes in members’ equity, or cash flows of Savo Island Cooperative Homes, Inc. NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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, where certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Savo Island Cooperative Homes, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Loan balances outstanding as of August 31, 2023 are as follows: Mortgage Insurance – Cooperative Projects $5,946,596 HOME Investment Partnership Program Loan $435,000