Audit 38234

Title: Loan/loan guarantee outstanding balances Accounting Policies: Note A Basis of Presentation The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of Christian Care Mesa III, Inc. (the Organization) under programs of the federal government for the year ended December 31, 2022. The information 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 Organization, it is not intended to and does not present the financial position, changes in the net assets, or cash flows of the Organization. The Organization received federal awards directly from federal agencies. Note B Significant Accounting Policies Expenditures reported in the schedule are reported on the accrual basis of accounting. When applicable, 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. No federal financial assistance has been provided to a subrecipient. The Organizations summary of significant accounting policies is presented in Note 1 in the Organizations basic financial statements. Note C Indirect Cost Rate The Organization does not draw for indirect administrative expenses and has not elected to use the 10% deminimis cost rate. Note D Loan Programs Expenditures reported in this schedule consist of the beginning of the year outstanding loan balance. The outstanding balance at December 31, 2022 was $7,478,995. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. MORTGAGE INSURANCE_NURSING HOMES, INTERMEDIATE CARE FACILITIES, BOARD AND CARE HOMES AND ASSISTED LIVING FACILITIES (14.129) - Balances outstanding at the end of the audit period were 7478995.