Audit 46539

Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the "Schedule") includes the federal grant activity of Housing and Education Alliance, Inc. under programs of the federal government for the year ended December 31, 2022. The information in this Schedule is presented in accordance with the requirements of Subpart F 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 Housing and Education Alliance, Inc., it is not intended to and does not present the financial position, changes in net assets or cash flows of Housing and Education Alliance, Inc. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Subpart F Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Housing Education and Alliance, Inc. did not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Expenditures incurred by Housing and Education Alliance, Inc. are subject to audit and possible disallowance by the federal grantor agencies. Management believes that, if audited, any adjustment for disallowed expenses would be immaterial. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.