Audit 38616

Title: NOTE C - U.S. DEPARTMENT OF HUD DIRECT LOAN PROGRAM Accounting Policies: NOTE A - BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards includes the federal grant activity of Chateau Cushnoc, Inc., HUD Project No. 024-EH080, and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title2 U.S. Code of Federal Regulations (CFR) 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 Chateau Cushnoc, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Chateau Cushnoc, Inc. NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures 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. De Minimis Rate Used: N Rate Explanation: Chateau Cushnoc, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the UniformGuidance. Chateau Cushnoc, Inc. has received a U.S. Department of HUD direct loan under Section 202 of the Housing Act. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. Chateau Cushnoc, Inc. received no additional loans during the year. The balance of the loan outstanding as of September 30, 2022 was $285,818.