Audit 31659

Title: GRANTS AND LOANS WITH ONGOING COMPLIANCE REQUIREMENTS Accounting Policies: The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal grant activity of Behavioral Health Resources & Subsidiaries (collectively, the "Organization") under programs of the federal government for the year ended June 30, 2022. 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 Organization, it is not intended to, and does not, present the financial position, changes in net assets or cash flows of the Organization. De Minimis Rate Used: N Rate Explanation: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, Cost Principals for Nonprofit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Passthrough entity identifying numbers are presented where available.The Organization has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance The Organization has three grants/loans from the Department of Housing and Urban Development with continuing compliance requirements. The Supportive Housing Program (ALN 14.235) has a compliance period of 20 years through 2028. The HOME Investment Partnership Program (Contract #0540404102, ALN 14.239) has a compliance period of 40 years through 2046. Both of the grants were used to help fund The Gardens low income housing project. The HOME Investment Partnership Program (Contract #59241613B, ALN 14.239) has a compliance period through 2030 and was used to fund the Tumwater Cove Apartments project. The Organization also received a loan from the Department of Agriculture with continuing compliance requirements. The Rural Rental Housing Loan (ALN 10.415) has a compliance period through 2031 and was used to fund the Evergreen Apartments project. All units related to the projects summarized above must be used for lowincome housing throughout the period of compliance from the initial date of occupancy.