Title: BASIS OF PRESENTATION
Accounting Policies: Expenditures reported on the Schedule of Expenditures of Federal Awards are reported on the accrual basis of accounting in accordance with U.S. generally accepted accounting principles, except that reported Federal expenditures include loans issued under the loan program, which are recognized as liabilities and not reported as expenses in the financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and/or OMB Circular A-122, Cost Principles for Non-profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The information included in this schedule is presented in accordance with the requirements of the Uniform Guidance and OMB Circular A-122, Cost Principles for Non-profit Organizations. Some amounts may differ from amounts presented in, or used in the preparation of, the basic financial statements. Reported Federal expenditures include only expenditures paid with Federal funds or reportable program income.
De Minimis Rate Used: N
Rate Explanation: HRC Cottages, Inc. did not elect to use the 10 percent de-minimis indirect cost rate as allowed under the Uniform Guidance.
The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal financial assistance of HRC Cottages, Inc. for the year ended December 31, 2023, and does not include any federal awards reported by subsidiaries. Federal financial assistance received directly from federal agencies, as well as federal financial assistance passed through from other government agencies, is included in this schedule. 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 portion of the operations of HRC Cottages, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of HRC Cottages, Inc.
Title: LOAN/LOAN GUARANTEE OUTSTANDING BALANCES
Accounting Policies: Expenditures reported on the Schedule of Expenditures of Federal Awards are reported on the accrual basis of accounting in accordance with U.S. generally accepted accounting principles, except that reported Federal expenditures include loans issued under the loan program, which are recognized as liabilities and not reported as expenses in the financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and/or OMB Circular A-122, Cost Principles for Non-profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The information included in this schedule is presented in accordance with the requirements of the Uniform Guidance and OMB Circular A-122, Cost Principles for Non-profit Organizations. Some amounts may differ from amounts presented in, or used in the preparation of, the basic financial statements. Reported Federal expenditures include only expenditures paid with Federal funds or reportable program income.
De Minimis Rate Used: N
Rate Explanation: HRC Cottages, Inc. did not elect to use the 10 percent de-minimis indirect cost rate as allowed under the Uniform Guidance.
RURAL RENTAL HOUSING LOANS (10.415) - Balances at the end of the audit period were $2,725,223.
Title: SUBRECIPIENTS
Accounting Policies: Expenditures reported on the Schedule of Expenditures of Federal Awards are reported on the accrual basis of accounting in accordance with U.S. generally accepted accounting principles, except that reported Federal expenditures include loans issued under the loan program, which are recognized as liabilities and not reported as expenses in the financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and/or OMB Circular A-122, Cost Principles for Non-profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The information included in this schedule is presented in accordance with the requirements of the Uniform Guidance and OMB Circular A-122, Cost Principles for Non-profit Organizations. Some amounts may differ from amounts presented in, or used in the preparation of, the basic financial statements. Reported Federal expenditures include only expenditures paid with Federal funds or reportable program income.
De Minimis Rate Used: N
Rate Explanation: HRC Cottages, Inc. did not elect to use the 10 percent de-minimis indirect cost rate as allowed under the Uniform Guidance.
HRC Cottages, Inc. did not provide awards to subrecipients during the year ended December 31, 2023.