Audit 303369

Title: U.S. Department of Housing and Urban Development Loan Program Accounting Policies: Note 1 - Basis of Presentation he accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Worthington Senior Housing, Inc., HUD Project No. 023-11160, under programs of the federal government for the fiscal year ended December 31, 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 Worthington Senior Housing, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Worthington Senior Housing, Inc. 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: Worthington Senior Housing, Inc. did not recover its indirect costs using the 10 percent de minimis indirect cost rate allowed under Section 200.414 of the Uniform Guidance. Worthington Senior Housing, Inc. has received a U.S. Department of Housing and Urban Development loan guarantee under Section 223(f) of the National Housing Act. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. Worthington Senior Housing, Inc. received no additional loans during the year. The balance of the loan outstanding at December 31, 2023 consists of: Federal Assistance Outstanding Balance Listing Number Program Name at December 31, 2023 14.155 Mortgage Insurance for the Purchase or $ 1,089,183 Refinancing of Existing Multifamily Housing Projects

Title: U.S. Department of Agriculture Loan Program Accounting Policies: Note 1 - Basis of Presentation he accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Worthington Senior Housing, Inc., HUD Project No. 023-11160, under programs of the federal government for the fiscal year ended December 31, 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 Worthington Senior Housing, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Worthington Senior Housing, Inc. 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: Worthington Senior Housing, Inc. did not recover its indirect costs using the 10 percent de minimis indirect cost rate allowed under Section 200.414 of the Uniform Guidance. Worthington Senior Housing, Inc. has received a U.S. Department of Agriculture loan under the Communities Facilities Loans and Grants program. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. Worthington Senior Housing, Inc. received no additional loans during the year. The balance of the loan outstanding at December 31, 2023 consists of: Federal Assistance Outstanding Balance Listing Number Program Name at December 31, 2023 10.766 Communities Facilities Loans and Grants $ 180,067