Audit 707

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. There were no sub-recipients during the year ended June 30, 2023. De Minimis Rate Used: N Rate Explanation: The Corporation 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 grant activity of Frankford Senior Housing Associates T/A Meadow House, HUD Property No. 034-EE010-WAH (the “Corporation”) under programs of the federal government for the year ended June 30, 2023. The 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 (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Frankford Senior Housing Associates T/A Meadow House, HUD Property No. 034-EE010-WAH, it is not intended to and does not present the financial position, changes in net assets or cash flows of Frankford Senior Housing Associates T/A Meadow House, HUD Property No. 034-EE010-WAH.

Title: U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD) CAPITAL ADVANCE 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. There were no sub-recipients during the year ended June 30, 2023. De Minimis Rate Used: N Rate Explanation: The Corporation has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The Corporation has received a HUD Capital Advance under Section 202 of the National Housing Act (Capital Advances). The balance of the Capital Advances at the beginning of the year is included in the federal expenditures presented in the Schedule. The Corporation received no additional capital advances during the year. The balance of the Capital Advances at June 30, 2023 consists of the HUD Section 202 Capital Advances in the amount of $4,232,600. The Corporation received $412,957 in project rental assistance payments under a Project Rental Assistance Contract under the same CFDA number (14.157), which is separately presented on the Schedule.