Audit 34573

Title: Loan/loan guarantee outstanding balances Accounting Policies: Note 1 - Basis of Presentation The accompanying schedule of expenditures of federal awards includes the federal grant activity of the Henderson County Housing Authority (Authority) and is presented on the accrual basis of accounting. The schedule summarizes the federal funds expended by the Authority under the programs of the federal government during the year ended September 30, 2022. The schedule of expenditures of federal awards displays the Authoritys expenditures charged to federal programs for the year ended September 30, 2022, the cost principals in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Authority has not implemented the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Note 2 - Sources of Funding The schedule includes all grants and contracts entered into directly between the Authority and agencies and departments of the federal government, as well as federal funds passed-through to the Authority by primary recipients. The Authority provided no part of its direct grant federal dollars to sub-recipients. Note 3 - Reconciliation of Federal Expenditures Total Federal Expenditures per Schedule of Federal Awards $1,134,058 Reconciling item: Department of Agriculture, Rural Housing (Note 13) -931,776 Total Federal Assistance per Financial Statements $ 202,282 HUD Subsidy $ 130,466 Rural Development Subsidy 71,816 Total Subsidy $ 202,282 De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. RURAL RENTAL HOUSING LOANS (10.415) - Balances outstanding at the end of the audit period were 931776.