Audit 398783

Note A - Basis Of Presentation: The accompanying schedule of expenditures of federal awards includes the federal award activity of Kaaterskill Commons, Inc., Project No. 014-EE252, and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Costs Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Kaaterskill Commons Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Kaaterskill Commons 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 Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Kaaterskill Commons, Inc. has elected not to use the 15-percent de minimis indirect cost rate allowed under the Uniform Guidance.

Note C - U.S Department of Housing and Urban Development Loan Program: Kaaterskill Commons, Inc. received a U.S. Department of Housing and Urban Development direct loans under Section 202 of the National Housing Act. In addition in 2011 an indirect program loan was received passed-through from the New York State Housing Trust Fund under a U.S. Department of Housing and Urban Development program. The loan balances outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. Kaaterskill Commons, Inc. received no additional loans during the year. The balance of the loans outstanding at December 31, 2025 consists of (the following table).