Audit 330124

Title: NOTE D--NONCASH ASSISTANCE Accounting Policies: NOTE A--BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Capital Roots, Inc. (the “Organization”), a not-for-profit corporation, under programs of the federal government for the year ended December 31, 2023. Federal awards received directly from the federal agencies as well as federal awards passed through other governments and not-for-profit entities are included on the Schedule. The information in this 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 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 B--SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Accounting The accompanying schedule of expenditures of federal awards is presented using the accrual basis of accounting. Such expenditures are recognized following the applicable cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identification numbers are presented where available. Relationship to Basic Financial Statements Federal award revenues are reported in the basic financial statements as government grant revenue. The basic financial statements are presented using the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. There were no federal awards expended in the form of noncash assistance by the Organization during the year ended December 31, 2023, and accordingly, no amounts were recorded on the Schedule.

Title: NOTE E--SUBRECIPIENTS Accounting Policies: NOTE A--BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Capital Roots, Inc. (the “Organization”), a not-for-profit corporation, under programs of the federal government for the year ended December 31, 2023. Federal awards received directly from the federal agencies as well as federal awards passed through other governments and not-for-profit entities are included on the Schedule. The information in this 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 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 B--SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Accounting The accompanying schedule of expenditures of federal awards is presented using the accrual basis of accounting. Such expenditures are recognized following the applicable cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identification numbers are presented where available. Relationship to Basic Financial Statements Federal award revenues are reported in the basic financial statements as government grant revenue. The basic financial statements are presented using the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The Organization provided no federal awards to subrecipients during the year ended December 31, 2023, and accordingly, no amounts were reported on the Schedule.