Audit 37427

Title: Loan/loan guarantee outstanding balances Accounting Policies: NOTE 1 BASIS OF PRESENTATIONThe accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Housing Authority of the City of Hope under programs of the federal government for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the pared 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 Housing Authority of the City of Hope, it is not intended to and does not present the financial position, changes in net position, or cash flows of Housing Authority of the City of Hope.The USDA-RD loan has an outstanding balance of $193,535 at the beginning of the fiscal year. Due to the continuing compliance requirements related to these loans, the entire balance has been considered a current year federal award in accordance with Uniform Guidance. NOTE 2 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 the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts, if any, shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.NOTE 3 INDIRECT COST RATEHousing Authority of the City of Hope has not made an election to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. RURAL RENTAL HOUSING LOANS (10.415) - Balances outstanding at the end of the audit period were 138472.