Audit 364548

Title: LOANS OUTSTANDING Accounting Policies: BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of New Jersey Housing and Mortgage Finance Agency (the Agency) under programs of the federal government for the year ended December 31, 2024. The information in this Schedule is presented in accordance with the requirements of 2 CFR 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 the Agency it is not intended to, and does not, present the financial position, changes in position, or cash flows of the Agency. SUMMARY OF SIGNIFICANT 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 for all awards with the exception of Assistance Listing #21.026 and #21.027, which follows criteria determined by the Department of Treasury for allowability of costs. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Agency has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The Agency securitizes loans under the Government National Mortgage Association Mortgage-Backed Securities Loan Guarantee Program (Assistance Listing #14.000). Loans securitized and outstanding at the beginning of the year and loans securitized during the year are included in the federal expenditures presented in the Schedule. The balance of securitized loans outstanding at December 31, 2024, was $742,364,648.