Audit 6865

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 Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement De Minimis Rate Used: N Rate Explanation: Presbyterian HDFC has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Presbyterian HDFC under programs of the federal government for the year ended August 31, 2023. 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 Presbyterian HDFC , it is not intended to and does not present the financial position, changes in net assets or cash flows of Presbyterian HDFC. For the year ended August 31, 2023, no awards were passed through to subrecipients.

Title: Loan 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 Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement De Minimis Rate Used: N Rate Explanation: Presbyterian HDFC has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance Presbyterian HDFC had a direct loan insured by HUD under the provisions of Section 207, pursuant to Section 223(f) of the National Housing Act. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. Presbyterian HDFC received no additional loans during the year. The balance of the loan outstanding at August 31, 2023 consists of: Federal assistance listing number Program name Outstanding balance at 08/31/23 14.155 Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects $ 8,762,223