Audit 333081

Title: Outstanding Loan Accounting Policies: Basis of Presentation The accompanying schedule of expenditures of federal awards includes the federal grant activity of Sterling Grove Housing Development, Inc., d/b/a Ed Washington Place Apartments 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 Sterling Grove Housing Development, Inc., d/b/a Ed Washington Place Apartments, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Sterling Grove Housing Development, Inc., d/b/a Ed Washington Place Apartments. De Minimis Rate Used: N Rate Explanation: Indirect Cost Rate Sterling Grove Housing Development, Inc., d/b/a Ed Washington Place Apartments has not elected to use the 10 percent de minimus indirect cost rate as allowed under the Uniform Guidance. Included in federal expenditures is a $1,362,676 direct loan outstanding balance at September 30, 2024. See Note 5 to the financial statements fur further details.