Audit 365211

Title: HUD CAPITAL ADVANCE Accounting Policies: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the schedule of expenditures of federal awards (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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. BASIS OF PRESENTATION The accompanying Schedule includes the federal award activity of Banyan Club Apartments Holding Corporation (the Project) 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 Project, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Project. De Minimis Rate Used: N Rate Explanation: The Project did not elect to use the 10 percent de minimis indirect cost rate. The balance of the HUD capital advance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. There were no additional HUD loans during the year. The balance of the HUD insured mortgage outstanding at December 31, 2024 is as follows: Assistance Federal Grantor/Pass-Through Listing Ending Grantor/Program Title Number Balance U.S. Department of Housing and Urban Development Mortgage Insurance for Purchase of Refinancing 14.155 $ 6,235,140