Audit 351092

Title: Note A: Accounting Policies: 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. Universal Housing Development Corporation has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: THE AUDITEE DID NOT USE THE DE MINIMIS COST RATE. The accompanying schedule of expenditures of federal awards includes the federal grant activity of Universal Housing Development Corporation 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 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 Universal Housing Development Corporation it is not intended to and does not present the financial position, changes in net assets or cash flows of Universal Housing Development Corporation.

Title: Note C: Notes Payable Accounting Policies: 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. Universal Housing Development Corporation has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: THE AUDITEE DID NOT USE THE DE MINIMIS COST RATE. Universal Housing Development Corporation has received a U.S. Department of Housing and Urban Development loan under Section 202 of the National Housing Act. The loan balance at the beginning of the year is included in the federal expenditures presented in the Schedule. Universal Housing Development Corporation also received a loan from Rural Development during the year and increased a loan from U.S. Department of Housing and Urban Development. The balance of the notes and at June 30, 2023 consists of: CFDA Number Program Name Outstanding Balance at June 30, 2024 10.447 The Rural Development (RD) Multi-Family Housing Revitalization Demonstration Program (MPR) $ 808,528 14.134 Mortgage Insurance Rental Housing Loan 1,572,644 $ 2381172