Audit 42165

Title: Loan/loan guarantee outstanding balances Accounting Policies: NOTE A - BASIS OF PRESENTATIONThe accompanying schedule of expenditures of federal awards includes the federal grant activity of Villa Calleguas, Inc., HUD Project No.122-HD063-CMI-NP, 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 Villa Calleguas, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Villa Calleguas, Inc.Note B - 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. Villa Calleguas, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.Note C - U.S. Department of Housing and Urban Development Loan ProgramVilla Calleguas, Inc. has received a U.S. Department of Housing and Urban Development direct loan under Section 811 of the National Housing Act. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the schedule. Villa Calleguas, Inc. received no additional loans during the year.14.181 Section 811 Direct Loan $2,264,700 De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES (14.181) - Balances outstanding at the end of the audit period were 2264700.