Audit 35703

Title: Loan/loan guarantee outstanding balances Accounting Policies: NOTE A BASIS OF ACCOUNTINGThe accompanying schedule of expenditures of federal awards (the schedule) includes the federalgrant activity of the Live the Dream Development, Inc. and subsidiary under programs of the federalgovernment for the year ended December 31, 2022 and is presented on the accrual basis ofaccounting. The information in this schedule is presented in accordance with the requirements ofTitle 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, CostPrinciples, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedulepresents only a selected portion of the operations of Live the Dream Development, Inc. andsubsidiary, it is not intended to and does not present the financial position, changes in net assets, orcash flows of Live the Dream Development, Inc. and subsidiary.NOTE B SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reported on the schedule are reported on the accrual basis of accounting. Suchexpenditures 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. Anynegative amounts shown on the schedule represent adjustments or credits made in the normal courseof business to amounts reported as expenditures in prior years.NOTE C FEDERAL LOANSLive the Dream Development, Inc. was approved by Warren County, Kentucky to receive aCommunity Development Block Grant from the Department of Housing and Urban Development.The loan totaled $1,000,000 and was used to construct 20 units of market rate housing, that must berented to persons age 55 or older. These amounts do not require any principal or interest paymentsand are forgiven at a rate of 1/10th, per year, for ten years, after completion of the housing project.The debt forgiveness began January 2021 and the balance at year end is $800,000. The loan balanceshown on the schedule is the beginning of year balance.NOTE D INDIRECT COST RATESLive the Dream Development, Inc. has not elected to use the 10 percent de minimis indirect cost rateas allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. COMMUNITY DEVELOPMENT BLOCK GRANTS/STATE'S PROGRAM AND NON-ENTITLEMENT GRANTS IN HAWAII (14.228) - Balances outstanding at the end of the audit period were 800000.