Audit 7598

Title: Basis of presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A- 122, Cost Principles for Non-Profit Organizations, or 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: Y Rate Explanation: The Corporation has elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Groton Affordable Housing, Inc. (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 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 Corporation, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Corporation. For the year ended June 30, 2023, no awards were passed through to subrecipients.

Title: U.S. Department of Housing and Urban Development loan program Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A- 122, Cost Principles for Non-Profit Organizations, or 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: Y Rate Explanation: The Corporation has elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Groton Affordable Housing, Inc. has received a U.S. Department of Housing Urban Development HUD-Insured Mortgage under Section 223(f) of the National Housing Act. The federal loan program listed below is administered directly by Midland Loan Services, Inc., and balances and transactions relating to the program are included in the Corporation’s basic financial statements. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. Groton Affordable Housing, Inc. received no additional loans during the year. The balance of the loan outstanding at June 30, 2023 consists of: AL Outstanding Number Program Name June 30, 2023 14.155 Section 223(f) HUD-Insured Mortgage $ 1 ,858,305