Audit 316669

Title: 3. FEDERAL LOAN PROGRAM AWARD Accounting Policies: 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION 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. The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of MDBM – Drake Senior Housing Corporation 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 (CFR) 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 MDBM – Drake Senior Housing Corporation, it is not intended to and does not present the financial position, changes in net assets, or cash flows of MDBM – Drake Senior Housing Corporation. De Minimis Rate Used: N Rate Explanation: 2. INDIRECT COST RATE MDBM – Drake Senior Housing Corporation has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. Drake Project has received a Federal loan program award. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the schedule. Drake Project received no additional Federal award loans during the year. The loan balance outstanding at December 31, 2023 consists of: Supportive Housing for the Elderly (Section 202)(CFDA Number 14.157) Outstanding Balance at December 31, 2023 = $3,308,063.

Title: 4. SUBRECIPIENTS Accounting Policies: 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION 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. The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of MDBM – Drake Senior Housing Corporation 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 (CFR) 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 MDBM – Drake Senior Housing Corporation, it is not intended to and does not present the financial position, changes in net assets, or cash flows of MDBM – Drake Senior Housing Corporation. De Minimis Rate Used: N Rate Explanation: 2. INDIRECT COST RATE MDBM – Drake Senior Housing Corporation has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. There were no awards passed through to subrecipients.