Audit 354701

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. The 10-percent de minimis indirect cost rate allowed under the Uniform Guidance is not applicable to the Organization since the Organization has no cost reimbursable grants or contracts. De Minimis Rate Used: N Rate Explanation: The 10-percent de minimis indirect cost rate allowed under the Uniform Guidance is not applicable to the Organization since the Organization has no cost reimbursable grants or contracts. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Fraser Independent Living Project IV, Apple Grove Court, HUD Project No. 092-HD047-WDD 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 the Project, it is not intended to and does not present the financial position, changes in net deficit, or cash flows of Fraser Independent Living Project IV, Apple Grove Court, HUD Project No. 092-HD047-WDD.

Title: Note 2: 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. The 10-percent de minimis indirect cost rate allowed under the Uniform Guidance is not applicable to the Organization since the Organization has no cost reimbursable grants or contracts. De Minimis Rate Used: N Rate Explanation: The 10-percent de minimis indirect cost rate allowed under the Uniform Guidance is not applicable to the Organization since the Organization has no cost reimbursable grants or contracts. 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. The 10-percent de minimis indirect cost rate allowed under the Uniform Guidance is not applicable to the Organization since the Organization has no cost reimbursable grants or contracts.

Title: Note 3: U.S. Department of Housing and Urban Development Loan Program 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. The 10-percent de minimis indirect cost rate allowed under the Uniform Guidance is not applicable to the Organization since the Organization has no cost reimbursable grants or contracts. De Minimis Rate Used: N Rate Explanation: The 10-percent de minimis indirect cost rate allowed under the Uniform Guidance is not applicable to the Organization since the Organization has no cost reimbursable grants or contracts. Apple Grove Court has received a U.S. Department of Housing and Urban Development direct loan under Section 811 Capital Advance 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. Apple Grove Court received no additional loans during the year. The balance of the loan outstanding consists of: CFDA Number Program Name Outstanding Balance at December 31, 2024 14.181 Section 811 Capital Advance $1,279,000