Audit 46997

Accounting Policies: 1 - Basis of Presentation The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Kinbrook Apartments, Inc. (the Project) under programs of the federal government for the fifteen-month period 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 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. 2 - Summary of Significant Accounting Policies Expenditures 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. The Project has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. 3 - Difference in Presentation The accompanying schedule of expenditures of federal awards presents property and equipment acquisitions as expenditures under the definition of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). The financial statements present property and equipment acquisitions as assets in accordance with accounting principles generally accepted in the United States of America. In addition, the accompanying schedule of expenditures of federal awards includes a capital advance from HUD (loan) as federal expenditures in accordance with 2 CFR Part 200, Subpart F. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.