Audit 335448

Title: NOTE D. PASSED-THROUGH SUBRECIPIENTS Accounting Policies: NOTE A. BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Swan Memorial Housing Association under programs of the federal government for the year ended September 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 Swan Memorial Housing Association, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Swan Memorial Housing Association. NOTE B. SUMMARY OF SIGNIFICANT 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: Swan Memorial Housing Association has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance For the year ended September 30, 2024, there were no awards passed through to subrecipients.

Title: NOTE E. CAPITAL ADVANCE Accounting Policies: NOTE A. BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Swan Memorial Housing Association under programs of the federal government for the year ended September 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 Swan Memorial Housing Association, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Swan Memorial Housing Association. NOTE B. SUMMARY OF SIGNIFICANT 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: Swan Memorial Housing Association has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance Under the HUD Section 202 Capital Advance Mortgage Note (the Note), Swan Manor Addition received an advance for the construction of the Project. The Note bears no interest and is not required to be repaid as long as the housing remains available to eligible households through November 22, 2034. At September 30, 2024, $3,572,100 is outstanding.