Audit 306358

Title: NOTE A - 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. De Minimis Rate Used: N Rate Explanation: The Organization has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) presents the activity of all federal award programs of Assistance to the Elderly, Inc. and Subsidiary (the “Organization”) for the year ended December 31, 2023. All federal awards received directly from federal and state agencies, as well as federal awards received from other government agencies are included in the Schedule. The accompanying schedule of expenditures of federal awards includes the federal grant activity of the Organization, HUD Project No. 066-22092. 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 operation 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. The Organization is described in Note 1 of the Organization’s financial statements and are included therein. This reporting includes financial and compliance audits in accordance with the Uniform Guidance. Major programs are identified in the Summary of Auditor’s Results section of the Schedule of Findings and Questioned Costs.

Title: NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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: The Organization has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance (1) 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. (2) The Organization has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.

Title: NOTE C - LOAN PROGRAMS 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: The Organization has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance In September 2015, the Organization refinanced their note payable. The note bears interest at a rate of 3.98% and requires monthly principal and interest payments of $52,764 until its maturity date of October 2050. This note is insured by the U.S. Department of Housing and Urban Development (HUD), and secured by a first mortgage on the Organization’s real estate. The terms of the note require maintenance of various covenants and compliance with certain Federal Housing Administration and HUD requirements under CFDA 14.129. The balance on the note at December 31, 2023 was $10,431,111.