Audit 31888

Accounting Policies: BASIS OF PRESENTATIONThe accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of TheHousing Foundation, Inc. under programs of the federal government for the year ended September 30, 2020. Theinformation in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of FederalRegulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for FederalAwards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of The HousingFoundation, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows ofThe Housing Foundation, Inc.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognizedfollowing the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowableor are limited as to reimbursement.The Housing Foundation, Inc. has elected to not use the 10 percent de minimis indirect cost rate as allowed under theUniform Guidance.LOAN AND LOAN GUARANTEE PROGRAMSThe Rural Development loan program listed below is administered directly by The Housing Foundation, Inc., and thebalances and transactions relating to these programs are included in The Housing Foundation, Inc.'s basic financialstatements. Loan outstanding at the beginning of the year totaled $10,257,938 and there were $60,767 in principal payments to the loans during the year. The loan balance as of September 30, 2020 are included in the federal expenditurespresented in the Schedule. The balance of loans outstanding at September 30, 2020 consists of:FederalOutstandingCFDABalance atNumberProgram NameSeptember 30, 202010.415Rural Development Mortgages $10,197,171 De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.