Audit 45165

Accounting Policies: NOTE A BASIS OF PRESENTATION:The accompanying schedule of expenditures of federal awards includes the federal award activity of Five Talents Apartments, Inc., HUD Project No. 065-HD044, 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 the Project, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Project.NOTE B SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such procedures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Project has elected not to use the 10-percent de Minimis indirect cost rate allowed under Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.