Audit 347514

Accounting Policies: NOTE A – BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of Presbyterian Homes of Charlotte, Inc. under programs of the federal government for the year ended December 31, 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 Presbyterian Homes of Charlotte, Inc., it is not intended to and does not present the financial position, changes in net assets (deficit), or cash flows of Presbyterian Homes of Charlotte, Inc. 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Presbyterian Homes of Charlotte, Inc. has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. NOTE C - LOAN GUARANTEE The U.S. Department of Housing and Urban Development (HUD) guaranteed the mortgage note maintained by Presbyterian Homes of Charlotte, Inc. Under the terms of the loan guarantee, Presbyterian Homes of Charlotte, Inc. must comply with the rules and regulations established by HUD. The mortgage note is administered directly by Presbyterian Homes of Charlotte, Inc., and balances and transactions relating to this program are included in Presbyterian Homes of Charlotte, Inc.'s basic financial statements. The outstanding mortgage at the beginning of the year is included in the federal expenditures presented in the Schedule. The balance of the mortgage outstanding at December 31, 2024 is $2,769,279. De Minimis Rate Used: N Rate Explanation: Presbyterian Homes of Charlotte, Inc. has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.