Audit 9787

Title: Mortgage Payable Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Thorpe Housing Development Fund Company, Inc. (the “Project”) under programs of the federal government for the year ended September 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 Project, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Project. De Minimis Rate Used: N Rate Explanation: 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. The Project has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The Project has received a U.S. Department of Housing and Urban Development mortgage loan under Section 221(d)(4) of the National Housing Act. The mortgage loan balance outstanding at the beginning of the year is included in the total federal expenditures presented in the Schedule. The outstanding mortgage loan balance as of September 30, 2023 was $13,081,723.