Audit 337129

Title: Basis of Accounting Accounting Policies: This schedule of expenditures of federal awards includes the federal award activity of Ponderosa Apartments, Inc. 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 (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in preparation of the basic financial statements. De Minimis Rate Used: N Rate Explanation: Ponderosa Apartments, Inc. has not elected to use the 10% de minimis cost rate as covered in 2 U.S. Code of Federal Regulations (CFR) part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) 200.414 Indirect (F&A) Costs. Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following cost principles contained in Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement.

Title: Rural Rental Housing Accounting Policies: This schedule of expenditures of federal awards includes the federal award activity of Ponderosa Apartments, Inc. 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 (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in preparation of the basic financial statements. De Minimis Rate Used: N Rate Explanation: Ponderosa Apartments, Inc. has not elected to use the 10% de minimis cost rate as covered in 2 U.S. Code of Federal Regulations (CFR) part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) 200.414 Indirect (F&A) Costs. The balance of the Rural Rental Housing federal loans outstanding as of September 30, 2024, amount to $5,174,063. The amount presented on the schedule for MPR loan funds represents loan proceeds received as of September 30, 2024. The MPR loans were scheduled to begin repayment during 2023. The balance of the MPR federal loans outstanding as of September 30, 2024, amount to $11,628,709.