Audit 289647

Title: NOTE D — ECONOMIC DEVELOPMENT ADMINISTRATION REVOLVING LOAN PROGRAM GRANT EXPENDITURES Accounting Policies: The accompanying schedule of expenditures of federal awards presents the activity of federal award programs of the Detroit Economic Growth Corporation (the “DEGC”). Federal awards received directly from federal agencies, as well as federal awards passed through other agencies, are included on this schedule. Basis of Presentation The information in the accompanying schedule of expenditures of federal awards 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 (the “Uniform Guidance”). Because this schedule presents only a selected portion of the DEGC’s operations, it is not intended to, and does not, present the financial position, changes in net assets, or cash flows of the DEGC. Basis of Accounting The accompanying schedule of expenditures of federal awards is presented using the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, in which certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimus cost rate. Total program expenditures under the Economic Development Administration (the “EDA”) revolving loan program grants for the year ended June 30, 2023 were determined as follows: See the Notes to the SEFA for table

Title: NOTE E — REVOLVING LOAN PROGRAM ASSETS Accounting Policies: The accompanying schedule of expenditures of federal awards presents the activity of federal award programs of the Detroit Economic Growth Corporation (the “DEGC”). Federal awards received directly from federal agencies, as well as federal awards passed through other agencies, are included on this schedule. Basis of Presentation The information in the accompanying schedule of expenditures of federal awards 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 (the “Uniform Guidance”). Because this schedule presents only a selected portion of the DEGC’s operations, it is not intended to, and does not, present the financial position, changes in net assets, or cash flows of the DEGC. Basis of Accounting The accompanying schedule of expenditures of federal awards is presented using the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, in which certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimus cost rate. As of June 30, 2023, the assets held by the revolving loan programs under the EDA grants were as follows: See the Notes to the SEFA for table