Audit 328369

Title: Basis of Presentation Accounting Policies: 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. De Minimis Rate Used: Y Rate Explanation: The Organization elected to use the 10% deminimis cost rate for its Federal programs. The accompanying Consolidated Schedule of Expenditures of Federal Awards (the "Schedule") includes the federal assistance activity of Pathway to Possible and Affiliates (the "Organization") under programs of the federal government for the year ended June 30, 2024. The information in the 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 consolidated 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: Loans Accounting Policies: 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. De Minimis Rate Used: Y Rate Explanation: The Organization elected to use the 10% deminimis cost rate for its Federal programs. Included in Supportive Housing for Persons with Disabilities and Supportive Housing for the Elderly is the cumulative amount of capital advances received from the U.S. Department of Housing and Urban Development ("HUD"). HUD requires the Organization to comply with requirements identified in the regulatory agreements with the Organization for forty years under the Capital Advance Program. The balances of loans outstanding with continuing compliance requirements under federal loan guarantee programs include those amounts received from HUD and SBA. The balances of these loans at June 30, 2024, are as follows: Program Title Federal Assistance Listing Number Amount Outstanding U.S. Department of Housing and Urban Development: Supportive Housing for Persons with Disabilities 14.181 $1,601,043 U.S. Small Business Administration: COVID-19 - Disaster Assistance Loans 59.008 144,379 $1,745,422