Audit 354820

Accounting Policies: Basis of Presentation The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal financial assistance activity of Epiphany Housing, Inc. (the Project) and is presented on the accrual basis of accounting. For purposes of this schedule, federal financial awards include an insured mortgage payable entered into by the Project. 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 assets, or cash flows of the Project. 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 the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Project has elected not to use the 15-percent de minimis indirect cost rate allowed under the Uniform Guidance. U.S. Department of Housing and Urban Development Loan Program The Project has a U.S. Department of Housing and Urban Development insured loan under section 223(f) 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. The balance of the outstanding federally insured mortgage as of December 31, 2024 is $1,981,282. De Minimis Rate Used: N Rate Explanation: Indirect Cost Rate The Project has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.