Audit 53627

Title: Loan/loan guarantee outstanding balances Accounting Policies: NOTE A - BASIS OF PRESENTATIONThe accompanying schedule of expenditures of federal awards includes the federal awardactivity of DESHA ELDERLY APARTMENTS, INC. and is presented on the accrual basisof accounting. The information in this schedule is presented in accordance withthe requirements of Title 2 U.S. Code of Federal Regulations Part 200, UniformAdministrative Requirements, Cost Principles, and Audit Requirements forFederal Awards (Uniform Guidance). Because the Schedule presents only a selectedportion of the operations of DESHA ELDERLY APARTMENTS, INC., it is not intended toand does not present the financial position, changes in net assets, or cash flowsof DESHA ELDERLY APARTMENTS, INC.NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reported on the Schedule are reported on the accrual basis of accounting,Such expenditures are recognized following the cost principles contained in theUniform Guidance, wherein certain types of expenditures are not allowable or arelimited as to reimbursement. DESHA ELDERLY APARTMENTS, INC. has elected not to usethe 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.NOTE C - O.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT CAPITAL ADVANCEDESHA ELDERLY APARTMENTS, INC, has received a U.S. Department of Housing and UrbanDevelopment Capital Advance under Section 202 of the Housing Act of 1959. TheCapital Advance balance outstanding at the beginning of the year is included inthe federal expenditures presented in the Schedule. DESHA ELDERLY APARTMENTS, INC.received no additional advances during the year. The balance of the CapitalAdvance outstanding at December 31, 2022 totaled $1,245,100. 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 1245100.