Audit 355329

Title: U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT LOAN PROGRAM Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Azalea Christian Manor under programs of the federal government for the year ended December 31, 2024. 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 Azalea Christian Manor, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Azalea Christian Manor. 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. Azalea Christian Manor has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. Azalea Christian Manor has received a U.S. Department of Housing and Urban Development insured loan under Section 207/223(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. Azalea Christian Manor received no additional loans during the year. The balance of the loan outstanding at December 31, 2024 consists of $2,913,633.