Audit 3529

Title: Note 1 - Basis of Presentation 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. De Minimis Rate Used: N Rate Explanation: Habitat 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 (the Schedule) includes the federal grant and loan activity of Habitat for Humanity Seattle-King County and its affiliates, including HFHSKC Community Housing Development Organization (Habitat). 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 Audit Requirements for Federal Awards. Because the Schedule presents only a selected portion of the operations of the Habitat, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Habitat.

Title: Note 3 - Summary of Significant Accounting Policies 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. De Minimis Rate Used: N Rate Explanation: Habitat has elected not to use the 10 percent de minimis indirect cost rate 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. Habitat has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.

Title: Note 3 - Loans and Grants With Continuing Compliance Requirements 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. De Minimis Rate Used: N Rate Explanation: Habitat has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. Habitat received the following funding through loans and grants from the U.S. Department of Housing and Urban Development and other agencies. Loan documents require compliance with program regulations until the maturity date of the loan or the period of affordability expires. The loan balances outstanding as of the beginning of the year and current year additions to those loans are included in the federal expenditures presented in the Schedule. The grant and loan balances outstanding at June 30, 2023, are as follows: See chart/table. Some of the loan balances under the HOME Investment Partnerships and Community Development Block Grant Programs for the period ended June 30, 2023, were awarded to HFHSKC Community Housing Development Organization.