Audit 51520

Title: Loan/loan guarantee outstanding balances Accounting Policies: NOTE A - Basis of PresentationThe accompanying schedule of expenditures of federal awards includes the federal award activity ofHillabee Towers, Inc. HUD Project No. 062-11229, 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 ofFederal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and AuditRequirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selectedportion of the operations of Hillabee Towers, Inc., it is not intended to and does not present the financialposition, changes in net assets, or cash flows of Hillabee Towers, Inc.NOTE B Summary of Significant Accounting PoliciesExpenditures reported on the Schedule are reported on the accrual basis of accounting. Such expendituresare recognized following the cost principles contained in the Uniform Guidance, wherein certain types ofexpenditures are not allowable or are limited as to reimbursement. Hillabee Towers, Inc. has elected notto use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. MORTGAGE INSURANCE FOR THE PURCHASE OR REFINANCING OF EXISTING MULTIFAMILY HOUSING PROJECTS (14.155) - Balances outstanding at the end of the audit period were 2791546.