Audit 55766

Title: Section 811 Capital Advance Accounting Policies: BASIS OF PRESENTATION - The accompanying schedule of expenditures of federal awards includes the federal grant activity of Villas at Bayou Park Apartments, HUD Project No. 114-HD019, 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 of Federal Regulations (CFR) 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 Villas at Bayou Park Apartments, it is not intended to and does not present the financial position, changes in net assets or cash flows of Villas at Bayou Park Apartments. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Expenditures reported in 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 reimbursements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. SECTION 811 CAPITAL ADVANCE -The Project received a loan under HUD's Sec 811 Capital Advance Program in 2005. The capital advance balance at the beginning of the year is included in the schedule of expenditures of federal awards. The Project has received no additional funds during the year. The capital advance balance at August 31, 2022 is $1,979,210. The capital advance is included in net assets with donor restrictions in the statement of financial position.