Audit 296126

Title: NOTE 1 – BASIS OF PRESENTATION 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 limited as to reimbursement. Expenditures are reported on the SEFA when: (1) the Federal Emergency Management Agency (“FEMA”) has approved the Corporation’s Project Worksheet (“PW”), and (2) the Corporation has incurred the eligible expenditures. Federal awards expended in years subsequent to the fiscal year in which the PW is approved are reported in the Corporation’s SEFA in those subsequent years. The Corporation is reimbursed at 90% of the approved amount of the PW and the amount of federal expenditures reported on the SEFA is limited to the maximum reimbursable value. De Minimis Rate Used: N Rate Explanation: The Corporation has elected not 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” or “SEFA”) includes the federal award activity of the Brooklyn Navy Yard Development Corporation (the “Corporation”), a component unit of The City of New York, for the year ended June 30, 2023. The information in the 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 (the “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 net position, changes in net position, or cash flows of the Corporation.

Title: NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 limited as to reimbursement. Expenditures are reported on the SEFA when: (1) the Federal Emergency Management Agency (“FEMA”) has approved the Corporation’s Project Worksheet (“PW”), and (2) the Corporation has incurred the eligible expenditures. Federal awards expended in years subsequent to the fiscal year in which the PW is approved are reported in the Corporation’s SEFA in those subsequent years. The Corporation is reimbursed at 90% of the approved amount of the PW and the amount of federal expenditures reported on the SEFA is limited to the maximum reimbursable value. De Minimis Rate Used: N Rate Explanation: The Corporation has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. 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 limited as to reimbursement. Expenditures are reported on the SEFA when: (1) the Federal Emergency Management Agency (“FEMA”) has approved the Corporation’s Project Worksheet (“PW”), and (2) the Corporation has incurred the eligible expenditures. Federal awards expended in years subsequent to the fiscal year in which the PW is approved are reported in the Corporation’s SEFA in those subsequent years. The Corporation is reimbursed at 90% of the approved amount of the PW and the amount of federal expenditures reported on the SEFA is limited to the maximum reimbursable value.

Title: NOTE 3 – INDIRECT COST RATES 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 limited as to reimbursement. Expenditures are reported on the SEFA when: (1) the Federal Emergency Management Agency (“FEMA”) has approved the Corporation’s Project Worksheet (“PW”), and (2) the Corporation has incurred the eligible expenditures. Federal awards expended in years subsequent to the fiscal year in which the PW is approved are reported in the Corporation’s SEFA in those subsequent years. The Corporation is reimbursed at 90% of the approved amount of the PW and the amount of federal expenditures reported on the SEFA is limited to the maximum reimbursable value. De Minimis Rate Used: N Rate Explanation: The Corporation has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The Corporation has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.