Audit 50811

Title: Loan/loan guarantee outstanding balances Accounting Policies: Notes to Schedule of Expenditures of Federal Awards1. Basis of PresentationThe accompanying schedule of expenditures of federal awards includes the federal award activity of SouthviewCourts, Inc. (HUD Project 073-EH082-L8-NP-WAH) and is presented on the accrual basis of accounting. Theinformation in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of FederalRegulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements forFederal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operationsof Southview Courts, Inc., it is not intended to and does not present the financial position, changes in net assets,or cash flows of Southview Courts, Inc.2. Summary of Significant Accounting PoliciesExpenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures arerecognized following the cost principles contained in the Uniform Guidance, wherein certain types ofexpenditures are not allowable or are limited as to reimbursement.3. Pass ThroughSouthview Courts, Inc. does not pass-through any federal awards to sub-recipients.4. Loans and Loan GuaranteesSouthview Courts, Inc. has received a U.S. Department of Housing and Urban Development direct loan underSection 202 of the National Housing Act. The loan balance outstanding at the beginning of the year is includedin the federal expenditures presented in the Schedule. Southview Courts, Inc. received no additional loansduring the year. The balance of the loan outstanding at December 31, 2022 consists of:Assistance Listing Number Program Name Outstanding Balance At14.157 Section 202 December 31, 2022Direct Loan $1,217,9085. Indirect Cost RateSouthview Courts, Inc. has elected not to use the 10% de minimis indirect cost rate allowed under the UniformGuidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. SUPPORTIVE HOUSING FOR THE ELDERLY (14.157) - Balances outstanding at the end of the audit period were 1217908.