Audit 339256

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: Costs are easily identifiable as direct or indirect, therefore it is not necessary to use a certain rate to determine indirect costs. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Osmundsen Court, Inc., HUD Organization No. 082-HD091, 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 Osmundsen Court, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Osmundsen Court, Inc.

Title: Outstanding Loan Balance 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: Costs are easily identifiable as direct or indirect, therefore it is not necessary to use a certain rate to determine indirect costs. Osmundsen Court, Inc. has received a HUD Capital Advance under Section 811 of the National Housing Act. The outstanding loan balance of the Section 811 Capital Advance program as of September 30, 2024, was $939,900. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the schedule.

Title: Subrecipients 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: Costs are easily identifiable as direct or indirect, therefore it is not necessary to use a certain rate to determine indirect costs. During the year ended September 30, 2024 there were no awards passed through to subrecipients.