Audit 308667

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, as applicable, either the cost principles in office of Management and Budget Circular A contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Impact Preservation Corporation has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Impact Preservation Corporation has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards includes the federal award activity of Impact Preservation 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 (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Impact Preservation Corporation, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Impact Preservation Corporation.

Title: NOTE C –Loan Program Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in office of Management and Budget Circular A contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Impact Preservation Corporation has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Impact Preservation Corporation has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Impact Preservation Corporation administers a relending loan program funded by the U.S. Department of Agriculture. Balances and transactions relating to this program are included in the Organization’s financial statements. Federal Assistance Listing Number - 10.415; Program Name - Rural Rental Housing Loans - Preservation Revolving Loan Fund; Outstanding Balance at December 31 2023 - $1302672