Audit 305314

Title: SUBRECIPIENTS Accounting Policies: BASIS OF PRESENTATION The schedule of expenditures of federal and state awards includes the federal and state grant activity of South Brunswick Community Development Corporation (Corporation) and is presented on the accrual basis of accounting. 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. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements. De Minimis Rate Used: N Rate Explanation: During the year ended December 31, 2023, the Corporation did not elect to use the de minimis cost rate when allocating indirect costs to its federal and state programs. During the year ended December 31, 2023, the Corporation did not provide any funds relating to their federal and state programs to subrecipients.

Title: LOAN AND LOAN GUARANTEE PROGRAMS Accounting Policies: BASIS OF PRESENTATION The schedule of expenditures of federal and state awards includes the federal and state grant activity of South Brunswick Community Development Corporation (Corporation) and is presented on the accrual basis of accounting. 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. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements. De Minimis Rate Used: N Rate Explanation: During the year ended December 31, 2023, the Corporation did not elect to use the de minimis cost rate when allocating indirect costs to its federal and state programs. As of December 31, 2023, there is $5,789,007 outstanding on the USDA loan.