Audit 41437

Title: Loan/loan guarantee outstanding balances Accounting Policies: NOTE A - BASIS OF PRESENTATIONThe accompanying schedule of expenditures of federal awards includes the federal award activity of BethelHousing Community Development, Inc. and is presented on the accrual basis of accounting. Theinformation in this schedule is presented in accordance with the requirements of Title 2 U.S. Code ofFederal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and AuditRequirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selectedportion of the operations of Bethel Housing Community Development, Inc., it is not intended to and doesnot present the financial position, changes in net assets, or cash flows of Bethel Housing CommunityDevelopment, Inc.NOTE B SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reported on the Schedule are reported on the accrual basis of accounting. Such expendituresare recognized following the cost principles contained in the Uniform Guidance, wherein certain types ofexpenditures are not allowable or are limited as to reimbursement. Bethel Housing CommunityDevelopment, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under theUniform Guidance.NOTE C U.S. Department of Housing and Urban Development Loan ProgramBethel Housing Community Development, Inc. has received a U.S. Department of Housing and UrbanDevelopment insured loan under Section 207 pursuant to Section 223(f) of the National Housing Act. Theloan balance outstanding at the beginning of the year is included in the federal expenditures presented inthe Schedule. Bethel Housing Community Development, Inc. received no additional loans during the year.The balance of the loans outstanding at December 31, 2022 consists of:Outstanding BalanceCFDA Number Program Name at December 31, 202214.155 Mortgage Insurance for the purchase orrefinance of existing Multifamily Housing Projects $ 2,243,47814.164 Residual Receipt Note (Flexible Subsidy Loan) $ 1,433,472 De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. MORTGAGE INSURANCE FOR THE PURCHASE OR REFINANCING OF EXISTING MULTIFAMILY HOUSING PROJECTS (14.155) - Balances outstanding at the end of the audit period were 2243478. RESIDUAL RECEIPT NOTE (14.164) - Balances outstanding at the end of the audit period were 1433472.