Audit 322127

Title: Basis of Presentation Accounting Policies: The accrual basis of accounting has been used. Under the accrual basis, revenue is recorded when realized, and expenses are recorded when incurred, without regard to the time cash is received or paid. The focus of the accrual basis of accounting is on the realization of revenue, the incurrence of costs, and the matching of revenue realized with costs incurred. 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. The Organization has elected to use the 10 percent de minimus indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of NID Housing Counseling Agency, Inc. (the Organization) 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 (CFR) Part 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operation of the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flow of the Organization.

Title: Summary of Significant Accounting Policies Accounting Policies: The accrual basis of accounting has been used. Under the accrual basis, revenue is recorded when realized, and expenses are recorded when incurred, without regard to the time cash is received or paid. The focus of the accrual basis of accounting is on the realization of revenue, the incurrence of costs, and the matching of revenue realized with costs incurred. 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. The Organization has elected to use the 10 percent de minimus indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. The accompanying Schedule has been prepared on the accrual basis of accounting. Under the accrual basis, revenue is recorded when realized, and expenses are recorded when incurred, without regard to the time cash is received or paid. The focus of the accrual basis of accounting is on the realization of revenue, the incurrence of costs, and the matching of revenue realized with costs incurred. 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. The Organization has elected to use the 10 percent de minimus indirect cost rate allowed under the Uniform Guidance.