Audit 302405

Title: Note 4 - Loans Accounting Policies: Note 1 – Basis of Presentation The accompanying schedule of expenditures of federal awards includes the federal grant activities of Christ the King Housing II, Inc. (the “Organization”), HUD Project No. 067-11327. 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 loan balance presented in the schedule of expenditures of federal awards reflect the maximum amount of federal awards outstanding during the year for which there are continuing compliance requirements. As the original mortgage was refinanced during the year, the continuing compliance requirements related to that mortgage ended. As such, it is not included in the schedule of expenditures of federal awards, but it is included in loan activity for the year ended December 31, 2023, as follows: Assistance Listing Description Original Loan Amount Balance at January 1, 2023 Additional Loan Funding/ (Payments Made and Refinancing) Balance at December 31, 2023 14.155 Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects (Section 223(f)) - 067-11327 $ 7,896,000 $ 7,610,337 $ (154,035) $ 7,456,302

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 Christ the King Housing II, Inc. (the “Organization”), HUD Project No. 067-11327. 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.