Audit 59933

Title: Loan Balances Accounting Policies: The special purpose financial statements include the accounts of National Church Residences and exclude the accounts of all other organizations of which National Church Residences is the sole member or any other related party organizations in accordance with the credit and loan agreements with The Huntington National Bank. Accordingly, the special purpose financial statements exclude any item of undistributed income or loss from the organizations of which National Church Residences is the sole member and all related party organizations. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of National Church Residences (the Organization) under programs of the federal government for the year ended June 30, 2022. The information in the 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 (the Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the special purpose balance sheet or special purpose statements of changes in net assets, or cash flows of the Organization. Expenditures reported in the Schedule are reported on the same basis of accounting as the special purpose financial statements. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The pass through entity identifying numbers are presented where available.The Organization has elected not to use the 10 percent de minimis indirect cost rate to recover indirect costs as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Loans outstanding at the beginning of the year and loans made during the year are included in the federal expenditures presented in the schedule of expenditures of federal awards. The balances of loans outstanding at June 30, 2022 consist of the follow: See the Notes to the SEFA for chart/table