Title: Note 1 - Basis of presentation
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such
expenditures are recognized following, as applicable the cost principles contained in the Uniform
Guidance, wherein certain types of expenditures are not allowable or are limited as to
reimbursement.
De Minimis Rate Used: N
Rate Explanation: The client elected not to use the de minimis cost rate
The accompanying schedule of expenditures of federal awards ("the Schedule") includes the
federal award activity of Bethel Area Housing, Inc, HUD Project No. 081-11061, 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 Bethel Area Housing, Inc, it is not intended to and does not present the financial
position, changes in net assets, or cash flows of Bethel Area Housing, Inc For the year ended
December 31, 2023, no awards were passed through to subrecipients.
Title: Note 2 - Summary of significant accounting policies
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such
expenditures are recognized following, as applicable the cost principles contained in the Uniform
Guidance, wherein certain types of expenditures are not allowable or are limited as to
reimbursement.
De Minimis Rate Used: N
Rate Explanation: The client elected not to use the de minimis cost rate
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such
expenditures are recognized following, as applicable the cost principles contained in the Uniform
Guidance, wherein certain types of expenditures are not allowable or are limited as to
reimbursement.
Title: Note 3 - Mortgage note payable
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such
expenditures are recognized following, as applicable the cost principles contained in the Uniform
Guidance, wherein certain types of expenditures are not allowable or are limited as to
reimbursement.
De Minimis Rate Used: N
Rate Explanation: The client elected not to use the de minimis cost rate
The remaining principal balance of the mortgage loan guaranteed by The Federal Housing
Administration is reflected at its respective balance at January 1, 2023 in the accompanying
schedule of expenditures of federal awards. The outstanding principal balance at December 31,
2023, amounted to $972,657.
Title: Note 4 - Other OMB Uniform Guidance Audit
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such
expenditures are recognized following, as applicable the cost principles contained in the Uniform
Guidance, wherein certain types of expenditures are not allowable or are limited as to
reimbursement.
De Minimis Rate Used: N
Rate Explanation: The client elected not to use the de minimis cost rate
Embrace Living Development has other affiliates that have expended more than $750,000 in federal
awards, which have separate OMB Uniform Guidance audits, which are not included in the
accompanying schedule of expenditures of federal awards.
Title: Note 5 - U.S. Department of Housing and Urban Development loan program
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such
expenditures are recognized following, as applicable the cost principles contained in the Uniform
Guidance, wherein certain types of expenditures are not allowable or are limited as to
reimbursement.
De Minimis Rate Used: N
Rate Explanation: The client elected not to use the de minimis cost rate
Bethel Area Housing, Inc, has received a U.S. Department of Housing and Urban Development
direct loan under Section 811 of the National Affordable Housing Act. The loan balance outstanding
at the beginning of the year is included in the federal expenditures presented in the Schedule.
Bethel Area Housing, Inc received no additional loans during the year. The balance of the loan
outstanding December 31, 2023 consists of:
CFDA Number Program Name
Outstanding
Balance at
January
1, 2023
14.134 Mortgage Insurance - Rental Housing $ 1,007,715