Audit 4293

Title: NOTE 3 - U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT LOAN PROGRAM Accounting Policies: NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of Westfield Towers, Inc., HUD Project No. 033 EE136 under programs of the federal government for the year ended June 30, 2023. 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 select portion of the operations of Westfield Towers, Inc., it is not intended to and does not present the financial position, changes in net assets (deficit), or cash flows of Westfield Towers, Inc. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N HUD has made a Section 202 Capital Advance to Westfield Towers, Inc., for the purpose of funding the major portion of the cost of the apartment building. The total amount of the advance was $ 5,661,900 at June 30, 2023. No interest or repayment of the advance is required as long as the Organization operates the apartment building for very low - income elderly persons for not less than 40 years from April 16, 2010. Until May 1, 2051, the Section 202 Capital Advance will continue to be reported on the schedule of expenditures of federal awards as a major program for the full amount of the advance.