Audit 33051

Title: Loan/loan guarantee outstanding balances Accounting Policies: NOTE A - BASIS OF PRESENTATIONThe accompanying schedule of expenditures of federal awards includes the federal award activity ofMorgan Falls Development Corporation and is presented on the accrual basis of accounting. Theinformation in this schedule is presented in accordance with the requirements of Title 2 U.S. Code ofFederal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and AuditRequirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selectedportion of the operations of Morgan Falls Development Corporation, it is not intended to and does notpresent the financial position, changes in net assets, or cash flows of Morgan Falls DevelopmentCorporationNOTE B SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reported on the Schedule are reported on the accrual basis of accounting. Such expendituresare recognized following the cost principles contained in the Uniform Guidance, wherein certain types ofexpenditures are not allowable or are limited as to reimbursement. Morgan Falls Development Corporationhas elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.NOTE C U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT LOAN PROGRAMMorgan Falls Development Corporation has received a U.S. Department of Housing and UrbanDevelopment Capital Advance under Section 811 of the National Housing Act. The Capital Advance underSection 811 balance outstanding at the beginning of the year is included in the federal expenditurespresented in the Schedule. Morgan Falls Development Corporation received no additional Capital Advanceloans during the year. The balance of the Capital Advance outstanding at December 31, 2022 consists of:CFDANumber Program NameOutstanding Balanceat December 31, 2022Supportive Housing for Persons with Disabilities(Section 811 Capital Advance)14.181 $ 857,900 De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES (14.181) - Balances outstanding at the end of the audit period were 857900.