Audit 67950

Title: Loans Outstanding Accounting Policies: Expenditures reported on 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 reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Authority has entered into a Risk Sharing Agreement and other mortgage insurance programs with the U.S. Department of Housing and Urban Development (HUD). The HUD Risk Sharing Program provides for HUDs assumption of 50% of the Authority's tax-exempt and taxable mortgages for new construction or acquisition on/rehabilitation of rental housing. Both construction and permanent financing are available for developments where at least either 25% or 45% of the housing units are occupancy and rent-restricted to be affordable for households with incomes below 50% or 60% of the area median income. The other programs provide insurance to the Authority against the loss on mortgage loan defaults from 10% to 99% of the loan value. The Intermediary Relending Program was created through a partnership with the United States Department of Agriculture to provide financing for community and economic development projects based in rural areas of Colorado. Under the program, the Authority originates direct loans for small businesses to finance real estate, machinery and equipment providing the borrower with a long-term, fixed interest rate throughout the term of the loan. The Capital Magnet Fund awards funds to finance affordable housing activities, as well as related economic development activities and community service facilities, with the objective of attracting private capital to economically distressed communities, including underserved rural areas. Loans outstanding at the beginning of the year and loans made during the year are included in the federal expenditures presented in the Schedule. The Authority had the following loan balances outstanding as of December 31, 2021, pursuant to the programs described above. INTERMEDIARY RELENDING PROGRAM (10.767) - Balances outstanding at the end of the audit period were 855411. HOUSING FINANCE AGENCIES (HFA) RISK SHARING (14.188) - Balances outstanding at the end of the audit period were 137835281. CAPITAL MAGNET FUND (21.011) - Balances outstanding at the end of the audit period were 8672837.

Title: Reconciliation to the Financial Statements Accounting Policies: Expenditures reported on 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 reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The reconciliation of the schedule of expenditures of federal awards to the Authority's basic financial statements for the year ended December 31, 2022, is as follows: [table not included due to not able to format]

Title: Basis of Presentation Accounting Policies: Expenditures reported on 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 reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Colorado Housing and Finance Authority (the Authority) under programs of the federal government for the twelve months ended December 31, 2022. The information 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 selected portion of the operations of the Authority, it is not intended to and does not present the net position, changes in net position, or cash flows of the Authority.