Audit 316293

Title: Note 2 Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of The Community Builders, Inc. and Subsidiaries 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 Community Builders, Inc. and Subsidiaries, it is not intended to, and does not present the consolidated financial position, changes in net assets, or cash flows of The Community Builders, Inc. and Subsidiaries. The 2023 schedule of expenditures of federal awards does not include direct and indirect federal De Minimis Rate Used: N Rate Explanation: The Community Builders, Inc. and Subsidiaries has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in OMB Circular A-122, “Cost Principles of Non-Profit Organizations” or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.

Title: Federal loan programs Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of The Community Builders, Inc. and Subsidiaries 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 Community Builders, Inc. and Subsidiaries, it is not intended to, and does not present the consolidated financial position, changes in net assets, or cash flows of The Community Builders, Inc. and Subsidiaries. The 2023 schedule of expenditures of federal awards does not include direct and indirect federal De Minimis Rate Used: N Rate Explanation: The Community Builders, Inc. and Subsidiaries has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The loan programs listed below are administered by The Community Builders, Inc. and Subsidiaries, and the balances and transactions related to these programs are included in The Community Builders, Inc. and Subsidiaries' basic consolidated financial statements. Loans outstanding at the beginning of the year and loans made during the year are included in the federal expenditures presented in the Schedule.