The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal grant activity of TERROS, Inc. and Affiliates under programs of the federal government for the year ended September 30, 2025. The information in the Schedule 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 (the “Uniform Guidance”). Because the Schedule presents only a selected portion of the operations of TERROS, Inc. and Affiliates, it is not intended to and does not present the consolidated financial position, change in net assets or cash flows of TERROS, Inc. and Affiliates. TERROS, Inc. and Affiliates. did not provide federal awards to sub-recipients during the year ended September 30, 2025.
TERROS, Inc. and Affiliates’ consolidated financial statements include the operations of Desert Esperanza, Inc., Desert Sol, Inc., and Triple R Community Housing 1, Inc. dba Villa Davis, which received $3,789,267 in federal awards from the U.S. Department of Housing and Urban Development (“HUD”) which is not included in the accompanying schedule of expenditures of federal awards for the year ended September 30, 2025. Management has elected to have separate audits of compliance performed under the Uniform Guidance on the federal awards for Desert Esperanza, Inc., Desert Sol, Inc., and Triple R Community Housing 1, Inc., in which separate audit reports have been issued for each of these entities.
TERROS, Inc. and Affiliates had the following loan balances at September 30, 2025. Loans outstanding at the beginning of the year, as well as new loans established during the year ended September 30, 2025, are included in the federal expenditures presented in the accompanying schedule of expenditures of federal awards. The balance of loans outstanding at September 30, 2025 consists of: Federal Grantor/Pass-Through Grantor/Program or Cluster Title Assistance Listing Number Contract Number Pass-Through Grantor's Identifying Number Value of Loan Outstanding U.S. Department of Housing and Urban Development Passed through the City of Phoenix Community Development Block Grants/Entitlement Grants 14.218 Loan #112387 Unknown $333,527 Community Development Block Grants/Entitlement Grants 14.218 Loan # 118417 Unknown $258,000 Passed through the City of Phoenix HOME Investment Partnership Program 14.239 Loan #118417-001 Unknown $1,810,000 Passed through the Arizona Department of Housing HOME Investment Partnership Program 14.239 Loan #401-06 Unknown $800,000