Audit 306336

Title: Note 1 - Basis of presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Renaissance Gardens 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 ("Schedule") includes the federal award activity of Renaissance Gardens Inc., HUD Project No.: 052-EE065, under programs of the federal government for the year ended June 30, 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 Renaissance Gardens it is not intended to and does not present the financial position, changes in net assets, or cash flows of Renaissance Gardens Inc.

Title: Note 2 - 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, as applicable, the cost principles contained in the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Renaissance Gardens Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in the Uniform Guidance.

Title: Note 3 - Indirect cost rate Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Renaissance Gardens Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Renaissance Gardens Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.

Title: Note 4 - U.S. Department of Housing and Urban Development capital advance program Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Renaissance Gardens Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The Organization entered into a capital advance agreement with HUD to assist in financing the Organization under Section 202 of the National Housing Act in the amount of $7,976,640. The capital advance is secured by a mortgage on the property and was recorded as grant revenue in prior years. The entire amount of the capital advance is included in federal expenditures presented in the Schedule. The Organization received no additional advances during the year. The capital advance does not bear interest and is not required to be repaid as long as the housing remains available to eligible low-income elderly persons for at least 40 years. Failure to keep the housing available for low-income elderly persons or other instances of default under the terms of the mortgage, capital advance agreement or regulatory agreement could cause the entire amount of the capital advance to be immediately payable, including interest from the date of the first advance. The capital advance restrictions expire on November 15, 2052. The restrictions on this grant are being released as net assets without donor restriction on a straight-line basis over its term. See below for a reconciliation between the original capital advance and the amount shown as net assets with donor restriction as of June 30, 2023 on the statement of financial position: