Title: Basis of Presentation
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 Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: Casa Grande, Inc. does not allocate indirect costs and, therefore, has not elected to use the 10% de minimis cost rate allowed under the Uniform Guidance.
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Casa Grande, Inc. 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 Casa Grande, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Casa Grande, Inc.
Title: Mortgage Note Payable
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 Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: Casa Grande, Inc. does not allocate indirect costs and, therefore, has not elected to use the 10% de minimis cost rate allowed under the Uniform Guidance.
Casa Grande, Inc. is financed by a mortgage loan from ORIX USA in the original amount of $1,297,700. The loan bears interest at 4.40% and matures in 2046 with monthly principal and interest payments of $6,061. As of June 30, 2023, the outstanding loan balance was $1,042,217
Title: Additional Audits
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 Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: Casa Grande, Inc. does not allocate indirect costs and, therefore, has not elected to use the 10% de minimis cost rate allowed under the Uniform Guidance.
HUD reserves the right to conduct additional audits of the Project’s grant program for economy and efficiency and program results that may result in disallowed costs to the Project. However, management does not believe such audits would result in any disallowed costs that would be material to the Project’s financial position at June 30, 2023.