Audit 7056

Title: LOANS Accounting Policies: BASIS OF PRESENTATION The accompanying schedule of expenditures of federal and stale awards (the Schedule) includes the federal grant activity of Passage Home, Inc. (the Corporation) under the programs of the federal and state governments for the year ended June 30, 2023. This 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. Because the Schedule presents only a selected portion of the operations of the Corporation, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Corporation. SUMMARY OF ACCOUNTING PRINCIPLES Expenditures reported in the Schedule are reported on the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: The Corporation has not elected to charge a 10% de minimis indirect cost rate. Instead, the Corporation negotiated an allocation plan approved by the Corporation’s oversight agency. The Corporation has the following loans with continuing compliance requirements which are included in the schedule of expenditures of federal and state awards: US Dept. of Housing and Urban Development: Pass-Through Wake County Home Investment Partnership Program CFDA#: 14.239 Balance: $ 657,766 Purpose: Affordable Housing Pass-Through City of Raleigh Home Investment Program CFDA#: 14.239 Balance: $657,766 Purpose: Affordable Housing Home Investment Program CFDA#: 14.239 Balance: $265,827 Purpose: Affordable Housing Pass-Through N.C. Housing and Finance Agency Home Investment Program CFDA#: 14.239 Balance: $657,768 Purpose: Affordable Housing Home Investment Program CFDA#: 14.239 Balance: $200,000 Purpose: Affordable Housing Pass-Through City of Raleigh ARPA Coronavirus State & Local Fiscal Recovery Funds CFDA#: 21.027 Balance: $889,889 Purpose: Affordable Housing