Audit 322343

Title: Note 1 - Basis of Presentation Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal awards expenditures of Breaking Ground Housing Development Fund Corporation and Affiliates (collectively, “Breaking Ground”) for the year ended December 31, 2023. The information presented in this Schedule has been prepared on the accrual basis of accounting and 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”). Therefore, some amounts presented in this Schedule may differ from amounts presented in or used in the preparation of the basic consolidated financial statements. Included within the Schedule is a 202 Advance loan program within CFDA 14.157. There were no new loans processed or payments received during the year ended December 31, 2023. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal awards expenditures of Breaking Ground Housing Development Fund Corporation and Affiliates (collectively, “Breaking Ground”) for the year ended December 31, 2023. The information presented in this Schedule has been prepared on the accrual basis of accounting and 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”). Therefore, some amounts presented in this Schedule may differ from amounts presented in or used in the preparation of the basic consolidated financial statements. Included within the Schedule is a 202 Advance loan program within CFDA 14.157. There were no new loans processed or payments received during the year ended December 31, 2023.

Title: Note 2 - Indirect Costs Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal awards expenditures of Breaking Ground Housing Development Fund Corporation and Affiliates (collectively, “Breaking Ground”) for the year ended December 31, 2023. The information presented in this Schedule has been prepared on the accrual basis of accounting and 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”). Therefore, some amounts presented in this Schedule may differ from amounts presented in or used in the preparation of the basic consolidated financial statements. Included within the Schedule is a 202 Advance loan program within CFDA 14.157. There were no new loans processed or payments received during the year ended December 31, 2023. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Breaking Ground has not elected to use the 10% federal minimum facilities and administrative (indirect) cost rate allowed under the Uniform Guidance.