Audit 43604

Title: U.S. Department of Housing Urban Development Loan Program Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of Garden Way Housing, Inc., HUD Project No. 033-EE119, 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 select portion of the operations of Garden Way Housing, Inc., it is not intended to and does not present the financial position, changes in net assets (deficit), or cash flows of Garden Way Housing, Inc. De Minimis Rate Used: N Rate Explanation: 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. Garden Way Housing, Inc. has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. HUD has made a Section 202 Capital Advance to Garden Way Housing, Inc., for the purpose of funding the major portion of the cost of the apartment complex. The total amount of the advance is $ 3,288,400 at June 30, 2022. No interest or repayment of the advance is required as long as the Organization operates the apartment complex for very low-income elderly persons for not less than 40 years from February 27, 2006. Until March 1, 2047, the Section 202 Capital Advance will continue to be reported on the Schedule as a major program for the full amount of the advance.