Audit 314843

Title: OUTSTANDING LOAN Accounting Policies: The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of Sea Research Foundation, Inc. (the "Foundation") under programs of the federal 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"). Because the Schedule presents only a selected portion of the operations of the Foundation, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Foundation. 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: Y Rate Explanation: The Foundation has elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. At December 31, 2023, the Organization has outstanding loans with the United States Small Business Administration as follows: Federal Assistance Listing Number 59.008 Program Title: Disaster Assistance Loans Amount: $507,663 The loan bears interest at 2.75%, which matures in April 2050. Monthly payments including principal and interest are $2,136.