Audit 56088

Title: U.S. Department of Housing and Urban Development Loan Program Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of Westfield Towers, Inc., HUD Project No. 033-EE136 under programs of the federal government for the year ended June 30, 2022. Theinformation in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a select portion of the operations of Westfield Towers, Inc., it is not intended to and does not present thefinancial position, changes in net assets (deficit), or cash flows of Westfield Towers, Inc. De Minimis Rate Used: N Rate Explanation: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Westfield Towers, Inc., has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. HUD has made a Section 202 Capital Advance to Westfield Towers, Inc., for thepurpose of funding the major portion of the cost of the apartment building. Thetotal amount of the advance is $ 5,661,900 at June 30, 2022. No interest orrepayment of the advance is required as long as the Organization operates theapartment building for very low - income elderly persons for not less than 40years from April 16, 2010. Until May 1, 2051, the Section 202 Capital Advancewill continue to be reported on the Schedule as a major program for the fullamount of the advance.