Audit 308562

Title: Note 3. HUD Title VI Loan Accounting Policies: Note 1. Basis of Presentation The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of the Stebbins Community Association 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 Stebbins Community Association, it is not intended to and does not present the basic financial statements of the Stebbins Community Association. Note 2. Summary of Significant Accounting Policies Expenditures reported on the Schedule are reported on the modified 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 are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amount reported as expenditures in prior years. The Stebbins Community Association has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Stebbins Community Association has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The HUD Title VI Loan process are considered used when project expenditures are incurred. In accordance with the Uniform Guidance, the amount listed on the SEFA is the loan balance at the beginning of fiscal year 2023. The balance outstanding at December 31, 2023 was $833,969 for loan TVI-022-000043 and $544,555 for loan TVI-022-000150.

Title: Note 4. Passed Through Awards Accounting Policies: Note 1. Basis of Presentation The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of the Stebbins Community Association 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 Stebbins Community Association, it is not intended to and does not present the basic financial statements of the Stebbins Community Association. Note 2. Summary of Significant Accounting Policies Expenditures reported on the Schedule are reported on the modified 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 are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amount reported as expenditures in prior years. The Stebbins Community Association has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Stebbins Community Association has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. No amounts were passed through to subrecipients.