Audit 302403

Title: Note 4 - Loan Accounting Policies: Note 1 – Basis of Presentation The accompanying schedule of expenditures of federal awards includes the federal grant activities of Transfiguration Housing, Inc. (the “Organization”), HUD Project No. 067-EE162. 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 the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization. Note 2 – Summary of Significant 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. De Minimis Rate Used: N Rate Explanation: Note 3 – Indirect Costs The Organization has elected not to use the 10% de minimis cost rate allowed by the Uniform Guidance. The Organization had the following loan balance at December 31, 2023: Additional Loan Original Balance at Funding/ Balance at Assistance Loan January 1, (Payments December 31, Listing Description Amount 2023 Made) 2023 14.239 Home Investment Partnerships Program $ 700,000 $ 700,000 $ - $ 700,000

Title: Note 5 - Contingency Accounting Policies: Note 1 – Basis of Presentation The accompanying schedule of expenditures of federal awards includes the federal grant activities of Transfiguration Housing, Inc. (the “Organization”), HUD Project No. 067-EE162. 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 the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization. Note 2 – Summary of Significant 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. De Minimis Rate Used: N Rate Explanation: Note 3 – Indirect Costs The Organization has elected not to use the 10% de minimis cost rate allowed by the Uniform Guidance. Expenditures incurred by the Organization are subject to audit and possible disallowance by federal agencies. Management believes that, if audited, an adjustment for disallowed expenses would be immaterial.