Audit 9738

Title: Note 1: Basis of Presentation Accounting Policies: Note 2: Summary of Significant 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: Note 4: Indirect Costs The Project has not elected 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 Faith Residence Apartments, Inc. (HUD Project No. 092-HD059) (the “Project”) under programs of the federal government for the year ended September 30, 2023. The information in the Schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the “Uniform Guidance”). Because the Schedule presents only a selected portion of the operations of Faith Residence Apartments, Inc. (HUD Project No. 092-HD059), it is not intended to and does not present the financial position, changes in net assets, or cash flows of Faith Residence Apartments, Inc. (HUD Project No. 092-HD059).

Title: Note 3: U.S. Department of Housing and Urban Development Section 811 Supportive Housing for Persons With Disabilitieses Accounting Policies: Note 2: Summary of Significant 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: Note 4: Indirect Costs The Project has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Faith Residence Apartments, Inc. received a capital advance from the U.S. Department of Housing and Urban Development under Section 811 of the National Housing Act that has been accounted for as a contribution and is reported in net assets with donor restrictions in the Project’s financial statements. The capital advance balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. The Project received no additional capital advances during the year. The balance of the capital advance outstanding at September 30, 2023, was $965,500.

Title: Note 5: Subrecipients Accounting Policies: Note 2: Summary of Significant 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: Note 4: Indirect Costs The Project has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The Project passed no federal awards through to subrecipients.