Audit 36462

Title: Loan/loan guarantee outstanding balances Accounting Policies: NOTE A - BASIS OF PRESENTATIONThe accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the Pike County Housing Authority 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 the Authority, it is not intended to and does not present the financial position, changes in net position or cash flows of the Authority.NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. NOTE C - RURAL RENTAL HOUSING LOANSThe Pike County Housing Authority has two mortgage loans with the U.S. Department of Agriculture. The loan balances as of June 30, 2021 and 2022 totaled $772,255 and $716,903, respectively. The amount reported on the accompanying Schedule of Expenditures of Federal Awards includes the loan payment subsidy of $78,077.HOME INVESTMENT PARTNERSHIPS PROGRAM (14.239) - The Pike County Housing Authority has a mortgage loan with the Kentucky Housing Corporation. The loan balance as of June 30, 2021 and 2022 totaled $352,460 and $343,960, respectively.