Audit 311015

Accounting Policies: NOTE 1 – BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Housing and Redevelopment Authority of Duluth, under programs of the federal government for the year ended September 30, 2023. The information in the schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirement, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of Housing and Redevelopment Authority of Duluth, it is not intended to and does not present the financial position, changes in net position or cash flows of Housing and Redevelopment Authority of Duluth. NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the schedule are reported on the accrual basis of accounting. For cost-reimbursement awards, 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. For performance-based awards, expenditures reported represent amounts earned. De Minimis Rate Used: N Rate Explanation: NOTE 3 – INDIRECT COST RATE The Housing and Redevelopment Authority of Duluth has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.