Audit 322979

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule of Expenditures of Federal Awards are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Subpart E - Cost Principles of the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Organization's significant accounting policies are presented in Note B in the Organization's basic financial statements. De Minimis Rate Used: N Rate Explanation: The Organization bills actual indirect costs up to but not exceeding the total budgeted costs within the grant agreements. The accompanying Schedule of Expenditures of Federal Awards includes the federal activity of Redwood Community Action Agency, Inc. (the Organization) for the year ended December 31, 2023, and is presented in the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. The Organization received federal awards that were passed through from various governmental agencies, which are included on the Schedule of Federal Awards.

Title: Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on the Schedule of Expenditures of Federal Awards are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Subpart E - Cost Principles of the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Organization's significant accounting policies are presented in Note B in the Organization's basic financial statements. De Minimis Rate Used: N Rate Explanation: The Organization bills actual indirect costs up to but not exceeding the total budgeted costs within the grant agreements. Expenditures reported on the Schedule of Expenditures of Federal Awards are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Subpart E - Cost Principles of the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Organization's significant accounting policies are presented in Note B in the Organization's basic financial statements.

Title: Relationship to Financial Statements Accounting Policies: Expenditures reported on the Schedule of Expenditures of Federal Awards are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Subpart E - Cost Principles of the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Organization's significant accounting policies are presented in Note B in the Organization's basic financial statements. De Minimis Rate Used: N Rate Explanation: The Organization bills actual indirect costs up to but not exceeding the total budgeted costs within the grant agreements. The amounts reported in the accompanying Schedule of Expenditures of Federal Awards agree with the amounts reported within the financial statements.

Title: Indirect Cost Rate Accounting Policies: Expenditures reported on the Schedule of Expenditures of Federal Awards are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Subpart E - Cost Principles of the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Organization's significant accounting policies are presented in Note B in the Organization's basic financial statements. De Minimis Rate Used: N Rate Explanation: The Organization bills actual indirect costs up to but not exceeding the total budgeted costs within the grant agreements. The Organization has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.

Title: Loan and Loan Balances Accounting Policies: Expenditures reported on the Schedule of Expenditures of Federal Awards are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Subpart E - Cost Principles of the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Organization's significant accounting policies are presented in Note B in the Organization's basic financial statements. De Minimis Rate Used: N Rate Explanation: The Organization bills actual indirect costs up to but not exceeding the total budgeted costs within the grant agreements. The outstanding balance of loan and loan guarantee programs, with continuing compliance requirements, at the beginning of the year is included in the federal expenditures presented in the Schedule. The balance of loans outstanding as of December 31, 2023 is $2,322,432.

Title: Subrecipients Accounting Policies: Expenditures reported on the Schedule of Expenditures of Federal Awards are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Subpart E - Cost Principles of the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Organization's significant accounting policies are presented in Note B in the Organization's basic financial statements. De Minimis Rate Used: N Rate Explanation: The Organization bills actual indirect costs up to but not exceeding the total budgeted costs within the grant agreements. There were no awards passed through to subrecipients during the year ended December 31, 2023.