Audit 41223

Title: Loan/loan guarantee outstanding balances Accounting Policies: 1.GENERAL INFORMATION: The accompanying schedule of expenditures of federal awards (the Schedule) presents the activities in all federal awards of Edison Arms Housing Development Fund Co., Inc. (the Organization). All financial assistance received directly from federal agencies as well as financial assistance passed through other governmental agencies or nonprofit organizations are included on the Schedule.2. BASIS OF ACCOUNTING The Schedule is presented using the accrual basis of accounting. The amounts reported in the Schedule may differ from certain financial reports submitted to federal funding agencies due to those reports being submitted on either cash or a modified cash basis of accounting.3. RELATIONSHIP TO BASIC FINANCIAL STATEMENTS Federal expenditures are reported on the statement of activities as operating costs before depreciation. The expenditures reported in the basic financial statements may differ from the expenditures reported in the Schedule due to program expenditures exceeding grant or contract budget limitations or agency matching or in-kind contributions which are not included as federal awards.4. BASIS OF PRESENTATION The accompanying Schedule includes the federal award activity of Edison Arms Housing Development Fund Co., Inc. under programs of the federal government for the year ended June 30, 2022. 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, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Edison Arms Housing Development Fund Co., Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Edison Arms Housing Development Fund Co., Inc.5.SUBRECIPIENTS The Organization provided no federal awards to subrecipients for the year ended June 30, 2022.6.INDIRECT COSTSThe Organization does not have a federally negotiated indirect cost rate and has not elected to use the 10 percent de minimis rate as covered in section 200.414 in the Uniform Guidance.7.U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT CAPITAL ADVANCE (SECTION 202)The Organization has received financing for the Project consisting of a capital advance in the amount of $5,866,000 from the United States Department of Housing and Urban Development (HUD). The advance is subject to HUD compliance requirements and will be forgiven in 2032 if all requirements are met. De Minimis Rate Used: N Rate Explanation: The Organization does not have a federally negotiated indirect cost rate and has not elected to use ht e10 percent de minimis rate. SUPPORTIVE HOUSING FOR THE ELDERLY (14.157) - Balances outstanding at the end of the audit period were 5866000.