Audit 55633

Title: Loan/loan guarantee outstanding balances Accounting Policies: NOTE A - BASIS OF PRESENTATIONFederalAssistanceListing Number14.13414.151FederalExpenditures$ 3,360,8391,202,738$ 4,563,577The accompanying schedule of expenditures of federal awards includes the federal awardactivity of PONTOTOC TOWNHOMES LLC and is presented on the accrual basis ofaccounting. The information in this schedule is presented in accordance with therequirements 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 PONTOTOC TOWNHOMES LLC, it is not intended to and doesnot present the financial position, changes in net assets, or cash flows of PONTOTOCTOWNHOMES LLC.NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES12Expenditures reported on the Schedule are reported on the accrual basis of accounting, Suchexpenditures are recognized following the cost principles contained in the UniformGuidance, wherein certain types of expenditures are not allowable or are limited as toreimbursement. PONTOTOC TOWNHOMES LLC has elected not to use the 10-percent de minimisindirect cost rate allowed under the Uniform Guidance.NOTE C - U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT INSURED MORTGAGEPONTOTOC TOWNHOMES LLC received an insured mortgage from the U.S. Department of Housing andUrban Development under Section 207 pursuant to Section 223(f) of the National HousingAct, as amended. The loan balance outstanding at the beginning of the year is includedin the federal expenditures presented in the Schedule. PONTOTOC TOWNHOMES LLC receivedone additional loan during the year (see Note D). The balance of this insured mortgageoutstanding at December 31, 2022 totaled $3,310,284.NOTED - U.S. DEPARTMENT OF HOUSING ANO URBAN DEVELOPMENT SUPPLEMENTAL NOTEPONTOTOC TOWNHOMES LLC received a Supplemental Note from the U.S. Department of Housing andOrban Development under Section 241(a) of the National Housing Act, as amended. Theloan balance outstanding at the beginning of the year is included in the federalexpenditures presented in the Schedule. PONTOTOC TOWNHOMES LLC had one other HOD loanoutstanding during the year (see Note C). The balance of this Supplemental Noteoutstanding at December 31, 2022 totaled $3,654,613. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. MORTGAGE INSURANCE_RENTAL HOUSING (14.134) - Balances outstanding at the end of the audit period were 3310284. SUPPLEMENTAL LOAN INSURANCE_MULTIFAMILY RENTAL HOUSING (14.151) - Balances outstanding at the end of the audit period were 3654613.