Audit 301418

Title: 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 are limited as to reimbursement. Brunswick Senior Resources, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Brunswick Senior Resources, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal and state awards (the "Schedule") includes the federal and state award activity of Brunswick Senior Resources, Inc., under programs of the federal and North Carolina state governments for the year ended June 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 Brunswick Senior Resources, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Brunswick Senior Resources, Inc. Brunswick Senior Resources, Inc. received its federal funding indirectly as it was initially awarded to the State of North Carolina and passed through its agencies. It also received direct State funding which is presented in a separate section of the Schedule.

Title: SUBRECIPIENTS 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 are limited as to reimbursement. Brunswick Senior Resources, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Brunswick Senior Resources, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Brunswick Senior Resources, Inc. spent the federal and state funds presented in the Schedule directly and did not make awards to subrecipients.