Audit 351344

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. Southlawn Apratments LLC 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: Southlawn Apratments LLC has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards includes the federal grant activity of Southlawn Apartments LLC 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 Southlawn Apariments LLC it is not intended to and does not present the financial position, changes in net assets or cash flows of Southlawn Apartments LLC. Note A: The accompanying schedule of expenditures of federal awards includes the federal grant activity of Southlawn Apartments LLC 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 Southlawn Apariments LLC it is not intended to and does not present the financial position, changes in net assets or cash flows of Southlawn Apartments LLC.

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. Southlawn Apratments LLC 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: Southlawn Apratments LLC has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. Southlawn Apratments LLC 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. The balance of the notes and at June 30, 2023 consists of: CFDA Number Program Name Outstanding Balance at June 30, 2023 14.134 Mortgage Insurance Rental Housing Loan 1,694,747 $ 1,594,747