Audit 331845

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such 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. De Minimis Rate Used: N Rate Explanation: River Manor Apartments, Inc. has elected not to use the 10-percent de minimus indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards includes the federal award activity of River Manor Apartments, Inc., HUD Project No. 082-11132, and is presented on the accrual basis of accounting. 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 River Manor Apartments, Inc., it is not intended to and does not present the financial; position, changes in net assets, or cash flows of River Manor Apartments, Inc.

Title: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such 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. De Minimis Rate Used: N Rate Explanation: River Manor Apartments, Inc. has elected not to use the 10-percent de minimus indirect cost rate allowed under the Uniform Guidance. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such 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. River Manor Apartments, Inc. has elected not to use the 10-percent de minimus indirect cost rate allowed under the Uniform Guidance.

Title: U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT CAPITAL ADVANCE PROGRAM Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such 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. De Minimis Rate Used: N Rate Explanation: River Manor Apartments, Inc. has elected not to use the 10-percent de minimus indirect cost rate allowed under the Uniform Guidance. River Manor Apartments, Inc. has received a U.S. Department of Housing and Urban Development (HUD) coinsured loan under Section 223(t). The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the schedule. River Manor Apartments, Inc. received no additional loans or capital advances during the current year. The balance of the capital advance outstanding at June 30, 2024, consists of: