Audit 311352

Title: 1. Basis of presentation Accounting Policies: 1. Basis of presentation The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the expenditures of NHPF Caroline Conduit, LLC (a Texas non-profit public benefit corporation) under programs of the federal government for the year ended December 31, 2023. The information in the Schedule is presented in accordance with the requirements of Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards. Therefore, some amounts presented in the Schedule may differ from amounts presented in or used in the preparation of the basic financial statements. For purposes of the Schedule, federal awards include all sub awards to the Company by nonfederal organizations pursuant to federal grants, contracts and similar agreements. 2. Summary of significant accounting policies Expenditures reported in the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowed. Assistance Listing Numbers (“ALN No.”) are provided when available. The Company elected not to use the 10% de minimis indirect cost rate. De Minimis Rate Used: N Rate Explanation: The Company elected not to use the 10% de minimis indirect cost rate. The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the expenditures of NHPF Caroline Conduit, LLC (a Texas non-profit public benefit corporation) under programs of the federal government for the year ended December 31, 2023. The information in the Schedule is presented in accordance with the requirements of Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards. Therefore, some amounts presented in the Schedule may differ from amounts presented in or used in the preparation of the basic financial statements. For purposes of the Schedule, federal awards include all sub awards to the Company by nonfederal organizations pursuant to federal grants, contracts and similar agreements.

Title: 2. Summary of significant accounting policies Accounting Policies: 1. Basis of presentation The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the expenditures of NHPF Caroline Conduit, LLC (a Texas non-profit public benefit corporation) under programs of the federal government for the year ended December 31, 2023. The information in the Schedule is presented in accordance with the requirements of Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards. Therefore, some amounts presented in the Schedule may differ from amounts presented in or used in the preparation of the basic financial statements. For purposes of the Schedule, federal awards include all sub awards to the Company by nonfederal organizations pursuant to federal grants, contracts and similar agreements. 2. Summary of significant accounting policies Expenditures reported in the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowed. Assistance Listing Numbers (“ALN No.”) are provided when available. The Company elected not to use the 10% de minimis indirect cost rate. De Minimis Rate Used: N Rate Explanation: The Company elected not to use the 10% de minimis indirect cost rate. Expenditures reported in the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowed. Assistance Listing Numbers (“ALN No.”) are provided when available. The Company elected not to use the 10% de minimis indirect cost rate.