Audit 340934

Title: LOAN AND LOAN GUARANTEE PROGRAMS Accounting Policies: BASIS OF PRESENTATION The accompanying consolidated schedules of expenditures of federal awards and state financial assistance (the Schedules) include the federal and state award activity of Affinity Partners Network, Inc. (dba Auress Opportunity Network) and Related Entities (the Organization) under programs of the federal and New Jersey state governments for the year ended August 31, 2024. The information in these Schedules 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 (the Uniform Guidance) and New Jersey (NJ) Circular Letter 15-08-OMB Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid. Acquisitions of fixed assets are expensed for award purposes, whereas for financial statement purposes, they have been capitalized. Therefore, some amounts presented in these Schedules may differ from amounts presented in, or used in the preparation of, the basic consolidated financial statements. Because these Schedules present only a selected portion of the operations of the Organization, they are not intended to and do not present the financial position, changes in net assets, or cash flows of the Organization. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on these Schedules are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the New Jersey (NJ) Circular Letter 15-08-OMB Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid or 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: Both Rate Explanation: INDIRECT COST The Organization has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance for the U.S. Department of Health and Human Services Block Grant for Community Mental Health Services Substance Abuse and Mental Health Services Administration program. The Organization has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance for its remaining contracts. Notes payable outstanding at the beginning of the year and loans received during the year are included in the federal expenditures presented in the Schedule. The balance of the notes outstanding at August 31, 2024 consists of the following: Assistance Listing Amount Cluster/Program Title Number Outstanding Supportive Housing for Persons with Disabilities (Section 811) 14.181 $ 674,700