Audit 363990

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 Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: St. Francis Xavier Apartments, Inc. has not elected to use the 15 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of St. Francis Xavier Apartments, Inc., HUD Project #033-EE127, under programs of the federal government for the year ended March 31, 2025. 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 St. Francis Xavier Apartments, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of St. Francis Xavier Apartments, Inc.

Title: NOTE B SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: St. Francis Xavier Apartments, Inc. has not elected to use the 15 percent de minimis indirect cost rate as allowed under the Uniform Guidance. (1) Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. (2) St. Francis Xavier Apartments, Inc. has not elected to use the 15 percent de minimis indirect cost rate as allowed under the Uniform Guidance. (3) Balances of loans and loan guarantee programs outstanding at the end of the audit period for loans under 2 CFR Section 200.502(b) are as follows: - HUD Capital Advance Program - $ 2,933,200.