Audit 356538

Title: Basis of Presentation Accounting Policies: Note B 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 not elected to use the 10% de- Minimis indirect cost rate as allowed under the Uniform Guidance since the Project is a single purpose entity that only incurs costs based on the reasonable and necessary costs for one single project. Federal loan programs with continuing program compliance requirements are presented on the Schedule with the beginning of the year loan balance. The ending balance is $1,115,500. De Minimis Rate Used: N Rate Explanation: The project has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance since the Project is a single purpose entity that only incurs costs based on the reasonable and necessary costs for one single project. Note A Basis of PresentationThe accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal awards activity of VRC-MLCC Housing Corporation (the “Project”) 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 Principals, and Audit Requirements for Federal Awards (the “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 balance sheet, changes in net assets or cash flows of the Project.