The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of the Organization under the U.S. Department of Housing and Urban Development for the year ended December 31, 2024. 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 Company, it is not intended to and does not present the financial position, activities, changes shareholders’ equity, or cash flows of the Organization. For the purposes of the Schedule, federal awards include all grants, contracts, loans, and loan guarantee agreements entered into directly between the Organization and agencies and departments of the federal government or as a subrecipient. For the year ended December 31, 2024, there are no loans, and loan guarantee agreements entered into between the Company and agencies and departments of the federal government. The Organization has categorized all awards into major and nonmajor programs in accordance with the provisions of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). For the year ended December 31, 2024, there was one major program, the Housing Counseling Assistance Program.
The accompanying Schedule has been prepared on the accrual basis of accounting. Under the accrual basis, revenue is recorded when realized, and expenses are recorded when incurred, without regard to the time cash is received or paid. The focus of the accrual basis of accounting is on the realization of revenue, the incurrence of costs, and the matching of revenue realized with costs incurred. Expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable, or are limited as to reimbursement. The Organization has elected to use the 10 percent de minimus indirect cost rate allowed under the Uniform Guidance.
Federal grants are subject to review by grantor agencies, which could result in requests for reimbursement to grantor agencies for disallowed expenditures. Management believes that it has adhered to the terms of its grants and that any disallowed expenditures resulting from such review would not have a material effect on the accompanying Schedule of Expenditures of Federal Awards for the U.S. Department of Housing and Urban Development.
The Organization did not receive any noncash assistance for the year ended December 31, 2024.
In preparing the Schedule of Expenditures of Federal Awards for the U.S. Department of Housing and Urban Development, the Organization has evaluated events and transactions for potential recognition or disclosure through September 19, 2025, the date of the Independent Auditor’s Report on the Schedule of Expenditures of Federal Awards and noted no events that required reporting or disclosure.