Audit 41316

Title: Note 3 - HUD-Insured Mortgage: 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 the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Bishop Sheen Ecumenical Housing Foundation, Inc. has not yet elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. All costs are directly allocated. The HUD insured mortgage listed subsequently, is administered directly by Bishop Sheen Ecumenical Housing Foundation, Inc., and the balance and transactions relating to this program is included in Bishop Sheen Ecumenical Housing Foundation, Inc.'s basic consolidated financial statements. The loan outstanding at the beginning of the year is included in federal expenditures presented in this schedule. The balance of the loan outstanding at June 30, 2022 net of forgiveness of debt was: SUPPORTIVE HOUSING FOR THE ELDERLY (14.157) - Balances outstanding at the end of the audit period were $4,493,840.

Title: Note 1 - Basis of Presentation: 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 the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Bishop Sheen Ecumenical Housing Foundation, Inc. has not yet elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. All costs are directly allocated. The accompanying Schedule of Expenditures of Federal Awards (the "Schedule") includes the federal award activity of Bishop Sheen Ecumenical Housing Foundation, 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 Bishop Sheen Ecumenical Housing Foundation, Inc., it is not intended to and does not present the financial position, change in net assets, or cash flows of Bishop Sheen Ecumenical Housing Foundation, Inc.