Audit 296506

Title: Basis of Presentation Accounting Policies: The SEFA presents the expenditures of all federal and local awards reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the grant agreements, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Organization did not elect to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The City of Los Angeles requires expenditures of state and local awards passed through the City to be reported on the SEFA using the cash basis of accounting. Such expenditures are reported on the consolidated financial statements under the accrual method of accounting. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Schedule of Expenditures of Federal and Local Awards (“SEFA”) includes the federal grant activity of Community Build, Inc. under programs of the federal and local government for the year ended September 30, 2022. The federal information in this schedule is presented in accordance with the regulations of Uniform Grants Guidance, 2 CFR Part 2000, Subpart F. The local information in this schedule is presented in accordance with the grant agreements. These amounts presented in this schedule may differ from amounts presented in or used in the presentation of the consolidated financial statements.