Audit 308989

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 and OMB Circular A-122, Cost Principles for Non-profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: La Casa de Esperanza, Inc. has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal and state awards (the Schedule) includes the federal and state award activity of La Casa de Esperanza, Inc. under programs of the federal and state government for the 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) and the State Single Audit Guidelines. Because the Schedule presents only a selected portion of the operations of La Casa de Esperanza, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of La Casa de Esperanza, Inc.

Title: Note D - U.S. Department of Housing and Urban Development Capital Advance 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 and OMB Circular A-122, Cost Principles for Non-profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: La Casa de Esperanza, Inc. has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. La Casa Village II, Inc. has received a U.S. Department of Housing and Urban Development Capital Advance under Section 202 of the National Housing Act. The capital advance at the beginning of the year is included in the federal expenditures presented in the Schedule. La Casa Village II, Inc. received no additional loans during the year. The balance of the capital advance outstanding at December 31, 2023 consists of: Federal Assistance Listing Number Program Name Outstanding Balance at December 31, 2023 14.157 Section 202 Capital Advance $ 1,388,100