Audit 381

Accounting Policies: NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS NOTE A: BASIS OF PRESENTATION The accompanying schedule of expenditures of Federal awards includes the Federal award activity of Jarvis Gardens Senior Apartments, Inc., under programs of the federal government for the year ended June 30, 2023 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 selected portion of the operations of Jarvis Gardens Senior Apartments, Inc. it is not intended to and does not present the financial position, changes in net assets, or cash flows of Jarvis Gardens Senior Apartments, Inc. NOTE B: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the schedule are 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 allowed or are limited to reimbursements. Jarvis Gardens Senior Apartments, Inc has elected not to use the 10 percent de minimis indirect cost rate allowed under Uniform Guidance. NOTE C: FEDERAL LOAN PROGRAMS The federal loan programs listed subsequently are administered directly by Jarvis Gardens Senior Apartments, Inc. and balances and transactions relating to the programs are included in Jarvis Gardens Senior Apartments, Inc.’s basic financial statements. Loans outstanding at the beginning of the year and loans made during the year are included in the federal expenditures presented in the Schedule. The balance of loans outstanding as of June 30, 2023 consists of: CFDA Number Program Name Outstanding balance at June 30, 2023 14.157 Supportive Housing for the Elderly(202) $5,728,000 De Minimis Rate Used: N Rate Explanation: N/A