Audit 325292

Title: SCOPE OF AUDIT PURSUANT TO UNIFORM GUIDANCE Accounting Policies: For purposes of the schedule of expenditures of federal awards, federal awards include all grants, contracts, loans, and loan guarantee agreements entered into directly between the Corporation and agencies and departments of the federal government. For the year ended December 31, 2020, the Corporation had no expenditures in the form of noncash assistance, had no federally funded insurance in effect for the year, and had no sub recipients. The accompanying schedule of expenditures of federal awards is prepared on the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. All federal grant activities of HOUSING OPPORTUNITIES MEAN EMPOWERMENT (the Corporation) are included in the scope of the U.S. Office of Management and Budget (OMB) Uniform Guidance audit. Under Government Auditing Standards and U.S. Department of Housing and Urban Development (HUD)’s Regulations, Supportive Housing for Persons with Disabilities is considered a major programs.

Title: CAPITAL ADVANCES Accounting Policies: For purposes of the schedule of expenditures of federal awards, federal awards include all grants, contracts, loans, and loan guarantee agreements entered into directly between the Corporation and agencies and departments of the federal government. For the year ended December 31, 2020, the Corporation had no expenditures in the form of noncash assistance, had no federally funded insurance in effect for the year, and had no sub recipients. The accompanying schedule of expenditures of federal awards is prepared on the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The total amounts funded under capital advances from HUD are reflected at their respective balances as of January 1, 2020 in the accompanying schedule of expenditures of federal awards and as of December 31, 2020 in the financial statements.