Audit 324416

Title: Note 1 - Basis of Presentation Accounting Policies: Note 1 - Basis of Presentation The accompanying schedule of expenditures of federal and state awards (the “Schedule”) includes the federal and state grant activity of the Palisades Emergency Residence Corporation (the “Organization”) under programs of the federal and state governments 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) and the New Jersey OMB Circular 15-08. Because the Schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Organization. Note 2 - Summary of Significant Accounting Policies 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 Uniform Administrative Requirements (CFR) Part 200 and Cost Principles for Non-Profit Organizations, and the New Jersey OMB Circular 15-08, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through Entities Pass-through entity identifying numbers are presented where available. Federal and State Loans Federal and State loan balances reflected in the schedule include the beginning balance and current year expenditures. 10% De Minimis Indirect Cost Rate The Organization has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal and state awards (the “Schedule”) includes the federal and state grant activity of the Palisades Emergency Residence Corporation (the “Organization”) under programs of the federal and state governments 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) and the New Jersey OMB Circular 15-08. Because the Schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Organization.

Title: Note 2 - Summary of Significant Accounting Policies Accounting Policies: Note 1 - Basis of Presentation The accompanying schedule of expenditures of federal and state awards (the “Schedule”) includes the federal and state grant activity of the Palisades Emergency Residence Corporation (the “Organization”) under programs of the federal and state governments 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) and the New Jersey OMB Circular 15-08. Because the Schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Organization. Note 2 - Summary of Significant Accounting Policies 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 Uniform Administrative Requirements (CFR) Part 200 and Cost Principles for Non-Profit Organizations, and the New Jersey OMB Circular 15-08, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through Entities Pass-through entity identifying numbers are presented where available. Federal and State Loans Federal and State loan balances reflected in the schedule include the beginning balance and current year expenditures. 10% De Minimis Indirect Cost Rate The Organization has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. 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 Uniform Administrative Requirements (CFR) Part 200 and Cost Principles for Non-Profit Organizations, and the New Jersey OMB Circular 15-08, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through Entities Pass-through entity identifying numbers are presented where available. Federal and State Loans Federal and State loan balances reflected in the schedule include the beginning balance and current year expenditures. 10% De Minimis Indirect Cost Rate The Organization has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.

Title: Note 3 - U.S. Department of Housing and Urban Development Loan Program Accounting Policies: Note 1 - Basis of Presentation The accompanying schedule of expenditures of federal and state awards (the “Schedule”) includes the federal and state grant activity of the Palisades Emergency Residence Corporation (the “Organization”) under programs of the federal and state governments 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) and the New Jersey OMB Circular 15-08. Because the Schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Organization. Note 2 - Summary of Significant Accounting Policies 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 Uniform Administrative Requirements (CFR) Part 200 and Cost Principles for Non-Profit Organizations, and the New Jersey OMB Circular 15-08, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through Entities Pass-through entity identifying numbers are presented where available. Federal and State Loans Federal and State loan balances reflected in the schedule include the beginning balance and current year expenditures. 10% De Minimis Indirect Cost Rate The Organization has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Organization has a U.S. Department of Housing and Urban Development (“HUD”) loan under Emergency Solutions Grant Program for COVID-19 Shelter Support. The outstanding balance of the loan at the beginning of the year is included in federal expenditures presented in the Schedule. The outstanding balance of the loan at December 31, 2023 is $755,000. The Organization has a HUD loan under Home Investment Partnerships Program for Multi-Family Rehabilitation Project. The outstanding balance of the loan at the beginning of the year is included in federal expenditures presented in the Schedule. There were no additional drawdowns against the loan during the year. The outstanding balance of the loan at December 31, 2023 is $700,000.