Audit 352646

Title: 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 Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Kamargo Housing Development Fund Company, Inc. 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. Note A - Basis Of Presentation The accompanying schedule of expenditures of federal awards includes the federal award activity of Kamargo Housing Development Fund Company, Inc., Project No. 014-EH242, 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, Costs Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Kamargo Housing Development Fund Company, Inc., it is not intended to and does not present the financial position, changes in net deficit, or cash flows of Kamargo Housing Development Fund Inc.

Title: B 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 Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Kamargo Housing Development Fund Company, Inc. 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. 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 Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Kamargo Housing Development Fund Company, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.

Title: C 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 Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Kamargo Housing Development Fund Company, Inc. 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. Note C - U.S Department of Housing and Urban Development Loan Program Kamargo Housing Development Fund Company, Inc. has received a U.S. Department of Housing and Urban Development direct loan under Section 207/223F of the National Housing Act. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. Kamargo Housing Development Fund Company, Inc. received no additional loans during the year. The balance of the loan outstanding at December 31, 2024 consists of the following: ALN: 14.155; Program Name: Section 207/223F, Mortgage Insurance for the Purchase or Refinance of Existing Multifamily Projects; Outstanding Balance at December 31, 2024: $949,648.