Audit 352689

Title: Basis of Presentation Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Torrey Place Apartments 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 Torrey Place Apartments, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Torrey Place Apartments. De Minimis Rate Used: N Rate Explanation: 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. Torrey Place Apartments has elected not to use the 10 per cent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Torrey Place Apartments 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 Torrey Place Apartments, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Torrey Place Apartments.

Title: Summary of Significant Accounting Policies Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Torrey Place Apartments 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 Torrey Place Apartments, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Torrey Place Apartments. De Minimis Rate Used: N Rate Explanation: 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. Torrey Place Apartments has elected not to use the 10 per cent de minimis indirect cost rate as allowed under the Uniform Guidance. 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. Torrey Place Apartments has elected not to use the 10 per cent de minimis indirect cost rate as allowed under the Uniform Guidance.

Title: Determination of Major and Nonmajor Programs Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Torrey Place Apartments 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 Torrey Place Apartments, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Torrey Place Apartments. De Minimis Rate Used: N Rate Explanation: 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. Torrey Place Apartments has elected not to use the 10 per cent de minimis indirect cost rate as allowed under the Uniform Guidance. The determination of the Type A (“major”) federal financial assistance program is based upon both the balance of the Capital Advance and the Project Rental Assistance Contract payments received during the period as HUD considers both elements the same program as they fall under the same CFDA number. For the year ended December 31, 2024, the Capital Advance and Project Rental Assistance programs exceeded the $750,000 major program determination limit. Accordingly, the U.S. Department of Housing and Urban Development Section 811 Capital Advance and Project Rental Assistance Contract under CFDA Number 14.181 constitutes the major program for the year ended December 31, 2024. There were no nonmajor programs for the year ended December 31, 2024.