Audit 36042

Title: BASIS OF PRESENTATION Accounting Policies: Nature of ActivitiesThe Corporation is a not-for-profit corporation organized under the laws of the State of New York, for the purpose of developing and operating a 50-unit housing project located in Schenectady, New York. The building is operated under Section 202 of the National Housing Act and regulated by the U.S. Department of Housing and Urban Development (HUD) with respect to rental charges and operating methods. The project has one non-income producing units and no non-income producing commercial space.Basis of AccountingExpenditures 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.Mont Pleasant YMCA Housing Corporation has elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.The amounts reported as federal expenditures in the Schedule represent the expenditures of federal funds. The non-federal share of expenditures, if any, is excluded from the Schedule.Recognition of Federal AwardsThe Corporation received a capital advance under Section 202 of the National Housing Act regulated by HUD. The capital advance does not bear interest and need not be repaid as long as the housing remains available to elderly persons for at least 40 years. The original amount of the advance was $3,146,675. The 40-year commitment expires in 2035. Failure to keep the housing available for elderly persons would result in HUD billing the Corporation for the entire capital advance outstanding plus interest since the date of the first advance. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. The accompanying schedule of federal awards (the Schedule) includes the federal award activityof Mont Pleasant YMCA Housing Corporation (the Corporation) under programs of the federalgovernment. The information in this Schedule is presented in accordance with the requirementsof Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, CostPrinciples, and Audit Requirements for Federal Awards (Uniform Guidance). Because theSchedule presents only a selected portion of the operations of Mont Pleasant YMCA HousingCorporation, it is not intended to and does not present the financial position, changes in netassets, or cash flows of Mont Pleasant YMCA Housing Corporation.