Audit 358504

Title: NOTE A - 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. Buckingham Terrace III, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Buckingham Terrace III, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards includes the federal award activity of Buckingham Terrace III, Inc. 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 Buckingham Terrace III, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Buckingham Terrace III, Inc.

Title: NOTE C – 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. Buckingham Terrace III, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Buckingham Terrace III, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Buckingham Terrace III, Inc. has received a U.S. Department of Housing and Urban Development capital advance under Section 202 of the National Housing Act. The capital advance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. Buckingham Terrace III, Inc. received no additional capital advances during the year. The balance of the capital advance outstanding at February 28, 2025 consists of: Federal Assistance Listing Number - 14.157; Program Name - Supportive Housing for the Elderly - Capital Advance; Outstanding Balance at February 28 2025 - $1425600