Audit 36780

Title: Loan/loan guarantee outstanding balances Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activityof Abundant Life Towers II, Inc. (the Project), and is presented on the accrual basis of accounting. The informationin this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UniformGuidance). Because the Schedule presents only a selected portion of the operations of the Project, it is notintended 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: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures arerecognized following the cost principles contained in the Uniform Guidance wherein certain types of expendituresare not allowable or are limited as to reimbursement. The Project has elected not to use the 10 percent de minimisindirect cost rate as allowed under the Uniform Guidance. The auditee did not use the de minimis cost rate. The Project has received a U.S. Department of Housing and Urban Development direct loan under Section 202 of the National Housing Act. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. The Project received no additional loans during the year. The balance of the loan outstanding at December 31, 2022, is as follows: CFDA Number - 14.157; Section 202 Direct Loan; Outstanding Balance at December 31, 2022 - $1,760,101. SUPPORTIVE HOUSING FOR THE ELDERLY (14.157) - Balances outstanding at the end of the audit period were 1760101.