Audit 16819

Title: Loan/loan guarantee outstanding balances Accounting Policies: Expenditures reported in the Schedule are reported on the accrual basis of accounting. Such expenditures arerecognized following the cost principles contained in the Uniform Guidance, wherein certain types of expendituresare not allowable or are limited as to reimbursement. Mission Asset Fund recognizes grants to the extent thateligible grant costs are incurred. Mission Asset Fund has elected to use the 10-percent de minimis indirect costrate allowed under the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS RAPID RESPONSE PROGRAM (CDFI RRP) (21.024) - Balances outstanding at the end of the audit period were 417425.

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported in the Schedule are reported on the accrual basis of accounting. Such expenditures arerecognized following the cost principles contained in the Uniform Guidance, wherein certain types of expendituresare not allowable or are limited as to reimbursement. Mission Asset Fund recognizes grants to the extent thateligible grant costs are incurred. Mission Asset Fund has elected to use the 10-percent de minimis indirect costrate allowed under the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity ofMission Asset Fund under programs of the federal government for the year ended December 31, 2022. Theinformation in this Schedule is presented in accordance with the cost principles contained in the requirements ofTitle 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, andAudit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selectedportion of the operations of Mission Asset Fund, it is not intended to and does not present the financial position,changes in net assets, or cash flows of Mission Asset Fund.

Title: LOANS ADMINISTERED BY MISSION ASSET FUND Accounting Policies: Expenditures reported in the Schedule are reported on the accrual basis of accounting. Such expenditures arerecognized following the cost principles contained in the Uniform Guidance, wherein certain types of expendituresare not allowable or are limited as to reimbursement. Mission Asset Fund recognizes grants to the extent thateligible grant costs are incurred. Mission Asset Fund has elected to use the 10-percent de minimis indirect costrate allowed under the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. Loans administered by Mission Asset Fund totaled $803,869 for the year ended December 31, 2022. Theamounts shown reflect loans made to eligible borrowers by the federal government. Mission Asset Fundsresponsibility over these loans is to determine eligibility and act as the disbursing agent for the loans. Loans madeto borrowers in the prior years, for which the federal government is still at risk, are held by Mission Asset Fund.Loans outstanding at the beginning of the year and loans made during the year are included in the federalexpenditures presented in the Schedule. Total loans outstanding as of December 31, 2022 were $417,425.

Title: SUBRECIPIENTS Accounting Policies: Expenditures reported in the Schedule are reported on the accrual basis of accounting. Such expenditures arerecognized following the cost principles contained in the Uniform Guidance, wherein certain types of expendituresare not allowable or are limited as to reimbursement. Mission Asset Fund recognizes grants to the extent thateligible grant costs are incurred. Mission Asset Fund has elected to use the 10-percent de minimis indirect costrate allowed under the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. Mission Asset Fund did not provide federal awards to subrecipients during the year ended December 31, 2022.

Title: LOANS RECEIVABLE OUTSTANDING Accounting Policies: Expenditures reported in the Schedule are reported on the accrual basis of accounting. Such expenditures arerecognized following the cost principles contained in the Uniform Guidance, wherein certain types of expendituresare not allowable or are limited as to reimbursement. Mission Asset Fund recognizes grants to the extent thateligible grant costs are incurred. Mission Asset Fund has elected to use the 10-percent de minimis indirect costrate allowed under the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. Below is a reconciliation of the loan receivable balances outstanding as of December 31, 2022.