Audit 360751

Title: NOTE 1 - GENERAL Accounting Policies: The schedule is presented using the accrual basis of accounting, which is the method used to prepare the Housing Authority’s basic financial statements. Note 1 of the Housing Authority’s basic financial statements describes the significant accounting policies used by the Housing Authority. Such expenses are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenses are not allowable or are limited to reimbursement. De Minimis Rate Used: N Rate Explanation: The Housing Authority has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards includes the Federal grant activity of Northern Circle Indian Housing Authority (the “Housing Authority”) for the year ended September 30, 2024. The information in the 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). The amounts presented in the Schedule agree to the amounts presented in, or used in the preparation of, the basic financial statements.

Title: NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: The schedule is presented using the accrual basis of accounting, which is the method used to prepare the Housing Authority’s basic financial statements. Note 1 of the Housing Authority’s basic financial statements describes the significant accounting policies used by the Housing Authority. Such expenses are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenses are not allowable or are limited to reimbursement. De Minimis Rate Used: N Rate Explanation: The Housing Authority has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The schedule is presented using the accrual basis of accounting, which is the method used to prepare the Housing Authority’s basic financial statements. Note 1 of the Housing Authority’s basic financial statements describes the significant accounting policies used by the Housing Authority. Such expenses are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenses are not allowable or are limited to reimbursement.

Title: NOTE 3 - SUBRECIPIENTS Accounting Policies: The schedule is presented using the accrual basis of accounting, which is the method used to prepare the Housing Authority’s basic financial statements. Note 1 of the Housing Authority’s basic financial statements describes the significant accounting policies used by the Housing Authority. Such expenses are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenses are not allowable or are limited to reimbursement. De Minimis Rate Used: N Rate Explanation: The Housing Authority has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The Housing Authority reported no subrecipient grant activity.

Title: NOTE 4 - OTHER MATTERS - INDIRECT COST RATE Accounting Policies: The schedule is presented using the accrual basis of accounting, which is the method used to prepare the Housing Authority’s basic financial statements. Note 1 of the Housing Authority’s basic financial statements describes the significant accounting policies used by the Housing Authority. Such expenses are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenses are not allowable or are limited to reimbursement. De Minimis Rate Used: N Rate Explanation: The Housing Authority has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The Housing Authority has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.