Audit 353399

Title: LOAN AND LOAN GUARANTEE PROGRAMS Accounting Policies: BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (Schedule) includes the federal grant activity of HUD Project No. 031-HD066 of Freeman Apartments, Inc. (Project) 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. Therefore, some amounts presented in this Schedule may differ from amounts presented in, or used in, the preparation of the financial statements. SUBRECIPIENTS During the year ended December 31, 2024, the Project did not provide any funds relating to its federal programs to subrecipients. De Minimis Rate Used: N Rate Explanation: During the year ended December 31, 2024, the Project did not elect to use the de minimis cost rate when allocating indirect costs to its federal programs. As of December 31, 2024, $1,204,600 was outstanding on the HUD capital advance under ALN 14.181 and $546,700 was outstanding under ALN 14.239, under the Project’s two federal loan programs.