Audit 325513

Title: BASIS OF PRESENTATION Accounting Policies: (1) Expenditures reported on the Schedule are reported on the accrual basis of accounting. Suchexpenditures are recognized following the cost principles contained in Uniform Guidance, whereincertain types of expenditures are not allowable or are limited as to reimbursement.(2) Liberty Towers Incorporated of Clarion, Inc. has not elected to use the 10 percent de minimisindirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying Schedule of Expenditures of Federal Awards (the "Schedule") includes the federal award activity of Liberty Towers Incorporated of Clarion, Inc., HUD Project #033-11057, under programs of the federal government for the year ended June 30, 2024. 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 Liberty Towers Incorporated of Clarion, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Liberty Towers Incorporated of Clarion, Inc.

Title: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: (1) Expenditures reported on the Schedule are reported on the accrual basis of accounting. Suchexpenditures are recognized following the cost principles contained in Uniform Guidance, whereincertain types of expenditures are not allowable or are limited as to reimbursement.(2) Liberty Towers Incorporated of Clarion, Inc. has not elected to use the 10 percent de minimisindirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. (1) Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. (2) Liberty Towers Incorporated of Clarion, Inc. has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. (3) Balances of loans and loan guarantee programs outstanding at the end of the audit period for loans under 2 CFR Section 200.502(b) are as follows: HUD Section 223(f) Mortgage Insurance for the Purchase or Refinance of Existing Multifamily Housing Loan, Year-End Balance $1,470,854.