Audit 339060

Title: NOTE C – PRIOR YEARS’ EXPENDITURES Accounting Policies: NOTE A - BASIS OF PRESENTATION The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal grant and loan activities of Satellite Affordable Housing Associates and Affiliates, and is presented on the accrual basis of accounting. 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). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic combined financial statements. The purpose of the Schedule is to present a summary of those activities of Satellite Affordable Housing Associates and Affiliates for the year ended June 30, 2024, which have been financed by the U.S. Government. For purposes of the Schedule, federal awards include all federal assistance entered into directly and indirectly between Satellite Affordable Housing Associates and Affiliates and the federal government. Affiliates of Satellite Affordable Housing Associates for the purposes of this combined schedule of expenditures of federal awards are nonprofit organizations under the control of Satellite Affordable Housing Associates’ board of directors that are not subject to separate audits in accordance with the requirements of the Uniform Guidance. NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported in the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards and OMB Circular A- 122, Cost Principles for Non-Profit Organizations, wherein certain types of expenditures are not allowed. Federal Assistance Listing numbers (“AL No.”) are provided when available. De Minimis Rate Used: N Rate Explanation: Satellite Affordable Housing Associates and Affiliates did not elect to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying Schedule includes expenditures from prior years for which continuing compliance is required.

Title: NOTE D – U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT LOAN PROGRAM Accounting Policies: NOTE A - BASIS OF PRESENTATION The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal grant and loan activities of Satellite Affordable Housing Associates and Affiliates, and is presented on the accrual basis of accounting. 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). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic combined financial statements. The purpose of the Schedule is to present a summary of those activities of Satellite Affordable Housing Associates and Affiliates for the year ended June 30, 2024, which have been financed by the U.S. Government. For purposes of the Schedule, federal awards include all federal assistance entered into directly and indirectly between Satellite Affordable Housing Associates and Affiliates and the federal government. Affiliates of Satellite Affordable Housing Associates for the purposes of this combined schedule of expenditures of federal awards are nonprofit organizations under the control of Satellite Affordable Housing Associates’ board of directors that are not subject to separate audits in accordance with the requirements of the Uniform Guidance. NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported in the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards and OMB Circular A- 122, Cost Principles for Non-Profit Organizations, wherein certain types of expenditures are not allowed. Federal Assistance Listing numbers (“AL No.”) are provided when available. De Minimis Rate Used: N Rate Explanation: Satellite Affordable Housing Associates and Affiliates did not elect to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. Satellite Affordable Housing Associates and Affiliates have received U.S. Department of Housing and Urban Development pass-through loans. The loan balances outstanding at the end of the year are as follows: CDBG Loan $ 437,753 HOPWA Loan $ 212,000 HOME Loan $2,125,966