Audit 41650

Title: Loan/loan guarantee outstanding balances Accounting Policies: Note 1 - Basis of PresentationThe accompanying schedule of expenditures of federal awards includes the federal award activity of Agape Central Texas Properties, Inc., HUD Project No. 115-11185, 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 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 Agape Central Texas Properties, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flow of Agape Central Texas Properties, Inc.Note 2 - Summary of Significant Accounting PoliciesExpenditures 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. Agape Central Texas Properties, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.Note 3 - U.S. Department of Housing and Urban Development Loan ProgramAgape Central Texas Properties, Inc. has received a U.S. Department of Housing and Urban Development direct loan under Section 223(a)(7) HUD Insured Loan Refinance Program. During the year, the original loan was refinanced and a new loan under Section 223(a)(7) HUD Insured Loan Refinance Program was entered into by the Project. The new loan balance outstanding upon refinancing is included in the federal expenditures presented in the Schedule. The balance of the loan outstanding at May 31, 2022 consists of:CFDA Number14.155Name of Federal Program Section 223(a)(7) Mortgage Insured--Refinance ProgramOutstanding Balance at May 31, 2022$10,717,699 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 10717699.