Audit 306857

Accounting Policies: ST. MARY’S ELDERLY HOUSING CORPORATION, INC. FHA Project No. 121-35944 NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS NOTE A: BASIS OF PRESENTATION The accompanying schedule of expenditures of Federal awards includes the Federal award activity of St. Mary’s Elderly Housing Corporation, Inc., under programs of the federal government for the year ended October 31, 2022 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 selected portion of the operations of St. Mary’s Elderly Housing Corporation, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of St. Mary’s Elderly Housing Corporation, Inc. NOTE B: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the schedule are 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 allowed or are limited to reimbursements. St. Mary’s Elderly Housing Corporation, Inc. has elected not to use the 10 percent de minimis indirect cost rate allowed under Uniform Guidance. NOTE C: FEDERAL LOAN PROGRAMS The federal loan programs are administered directly by St. Mary’s Elderly Housing Corporation, Inc., and balances and transactions relating to the programs are included in the Organization’s basic financial statements. Loans outstanding at the beginning of the year, and loans made during the year, are included in the federal expenditures presented in the schedule of expenditures of Federal Awards. The balance of loans outstanding as of March 8, 2023 consists of: CFDA Number Program Name Outstanding balance at March 8, 2023 14.134 Mortgage Insurance Rental Housing $5,152,980 De Minimis Rate Used: N Rate Explanation: N/A