The accompanying Schedule of Expenditures of Federal Awards (the "Schedule" or "SEFA") includes the federal award activity of Providence Community Housing (the "Corporation") and its controlled subsidiaries 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 Regulation_s Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards ("Uniform Guidance"). The Corporation is the managing member or otherwise exercises control over certain for-profit entities that own and operate U.S. Department of Housing and Urban Development ("HUD")-assisted properties. These entities are consolidated in the Corporation's financial statements in accordance with accounting principles generally accepted in the United States of America. Accordingly, federal awards expended by these entities are included in the accompanying Schedule. The for-profit entities are subject to audit requirements under the HUD Consolidated Audit Guide, rather than Uniform Guidance Subpart F. Separate audits of these entities have been performed in accordance with the HUD Audit Guide, and such audits include testing of compliance with HUD program requirements applicable to those entities. In preparing the Schedule and in determining the nature, timing, and extent of testing performed under Uniform Guidance, the Corporation and its auditors have considered the results of the HUD Audit Guide audits for these for-profit entities. Accordingly, federal awards expended by such entities are included in the Schedule but are not subject to compliance testing under Uniform Guidance as part of the Corporation's Single Audit. The inclusion of federal expenditures from these for-profit entities in the Schedule is for purposes of presenting the full extent of federal awards expended by the consolidated reporting entity. However, because such entities are not subject to Uniform Guidance Subpart F, the related programs were not selected for testing as major programs under the Corporation's Single Audit.
Providence Community Housing and Subsidiaries did not elect to use the 15% de minim is indirect cost rate.
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, where certain types of expenditures are not allowable or are limited as to reimbursement.
HOME Investment Partnerships Program (ALN 14.239) -- Providence Community Housing and Subsidiaries had outstanding loan balances under the HOME Investment Partnerships Program totaling $3,940,736 at January 1, 2025. One entity added through consolidation during 2025 had an outstanding loan balance of $795,608 at both January 1 and December 31, 2025. The total balance of HOME loans outstanding at December 31, 2025, was $4,736,344. No new HOME loans were received during the year. These loans are subject to continuing compliance requirements and, accordingly, the outstanding balances are disclosed in the notes to the SEFA in accordance with 2 CFR §200.502(b). Community Development Block Grant (CDBG) Program (ALN 14.218) -- The Corporation had an outstanding loan under the Community Development Block Grant (CDBG) program totaling $2,096,627 at December 31, 2025. This loan was received in a prior year, and no additional loan proceeds were received during the year ended December 31, 2025. Accordingly, no federal expenditures related to this loan are reported on the SEFA for 2025. The full amount of the loan was reported as federal expenditures in the year received. The loan is subject to continuing compliance requirements; accordingly, the outstanding balance is disclosed in the notes to the SEFA in accordance with 2 CFR §200.502(b).
Amounts received from HUD for special claims related to Section 8 programs totaled $40,884 and are included in the Section 8 federal expenditures presented in the Schedule.