Audit 321799

Title: Note A - Basis of Presentation Accounting Policies: Note B – Summary of Significant Accounting Policies - 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, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Shelton Senior Housing, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Shelton Senior Housing, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards includes the federal award activity of Shelton Senior Housing, Inc., HUD Project No. 017-EE023 and is presented on the accrual basis of accounting. 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 Shelton Senior Housing, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Shelton Senior Housing, Inc.

Title: Note C - U.S. Department of Housing and Urban Development Loan Program Accounting Policies: Note B – Summary of Significant Accounting Policies - 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, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Shelton Senior Housing, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Shelton Senior Housing, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Shelton Senior Housing, Inc. has received a U.S. Department of Housing and Urban Development (HUD) Section 202 Capital Advance. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the schedule. Shelton Senior Housing, Inc. received no additional loans during the year. The balance of the loan outstanding on December 31, 2023 consists of: [table...Program Name = Section 202 Supportive Housing for the Elderly, Federal Assistance Listing Number = 14.157, Balance 12/31/2023 = $3,789,600].