Audit 324293

Title: Outstanding Loan Balance Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of the Project under programs of the federal government for the year ended June 30, 2024. The information in the 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”). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Because the Schedule presents only a selected portion of the operations of the Project, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Project. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles contained in OMB A-122 or 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: AAA Elderly Housing - Heritage Villa of Pine Bluff, Inc. has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. AAA Elderly Housing - Heritage Villa of Pine Bluff, Inc. – U.S. Department of Housing and Urban Development (HUD) Project No. 082-EE078-NP-L8 did not have a balance outstanding due to any federal loan programs included in basic financial statements at June 30, 2024. The mortgage note with HUD through Supportive Housing for the Elderly program was recorded as a contribution from HUD due to the terms described in the notes to the financial statements.