Audit 35152

Title: Loan/loan guarantee outstanding balances Accounting Policies: BASIS OF PRESENTATION: The accompanying schedule of expenditures of federal awards includes the federal grant activity of The Russell House, Inc., FHA Project No. 051-11194, 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 of Federal Awards. Because the Schedule presents only a selected portion of the operations of The Russell House, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of The Russell House, Inc. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Expenditures reported on the schedule are reported on the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. MORTGAGE INSURANCE FOR THE PURCHASE OR REFINANCING OF EXISTING MULTIFAMILY HOUSING PROJECTS (14.155) - Balances outstanding at the end of the audit period were 2679577.

Title: Loan/loan guarantee outstanding balances Accounting Policies: BASIS OF PRESENTATION: The accompanying schedule of expenditures of federal awards includes the federal grant activity of The Russell House, Inc., FHA Project No. 051-11194, 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 of Federal Awards. Because the Schedule presents only a selected portion of the operations of The Russell House, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of The Russell House, Inc. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Expenditures reported on the schedule are reported on the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. SECTION 223(f) INSURED MORTGAGE: The balance of the Organizations Section 223(f) insured mortgage outstanding at the end of the year was $2,679,577.