Audit 39342

Title: Loan/loan guarantee outstanding balances Accounting Policies: NOTE A - BASIS OF PRESENTATIONThe accompanying schedule of expenditures of federal awards includes the federal award activity of HillriseMutual Housing Association, Inc. and is presented on the accrual basis of accounting. The information in thisschedule 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 (UniformGuidance). Because the Schedule presents only a selected portion of the operations of Hillrise Mutual HousingAssociation, Inc., it is not intended to and does not present the financial position, changes in net assets, or cashflows of Hillrise Mutual Housing Association, Inc.NOTE B SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures arerecognized following the cost principles contained in the Uniform Guidance, wherein certain types ofexpenditures are not allowable or are limited as to reimbursement. Hillrise Mutual Housing Association, Inc. haselected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.NOTE C U.S. Department of Housing and Urban Development Loan ProgramHillrise Mutual Housing Association, Inc. has received a U.S. Department of Housing and Urban Developmentinsured loan under Section 213 of the National Housing Act. The loan balance outstanding at the beginning ofthe year is included in the federal expenditures presented in the Schedule. Hillrise Mutual Housing Association,Inc. received no additional loans during the year. The balance of the loan outstanding at September 30, 2022consists of:Outstanding BalanceCFDA Number Program Name at September 30, 202214.126 Mortgage Insurance__Cooperative Projects $ 1,722,210 De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. MORTGAGE INSURANCE_COOPERATIVE PROJECTS (14.126) - Balances outstanding at the end of the audit period were 1722210.