Audit 341550

Title: Basis of presentation 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, wherein certain types of expenditures are not allowed. Assistance Listing numbers (“AL No.”) are provided when available. De Minimis Rate Used: N Rate Explanation: The Organization elected not to use the 10% de minimis indirect cost rate. The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the expenditures of The SEED School of Los Angeles County (the “Organization”) and Subsidiaries 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 Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards. Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in, the preparation of the basic financial statements. For purposes of the Schedule, federal awards include all sub-awards to the Organization by nonfederal organizations pursuant to federal grants, contract and similar agreements.

Title: Outstanding federal loans 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, wherein certain types of expenditures are not allowed. Assistance Listing numbers (“AL No.”) are provided when available. De Minimis Rate Used: N Rate Explanation: The Organization elected not to use the 10% de minimis indirect cost rate. The following represents the amount of outstanding loans identified by AL No. All loans are provided by the U.S. Department of Housing and Urban Development and are included in the Schedule. 14.218 Community Development Block Grants: Loans received in year ended June 30, 2024: $1,494,975, Prior year loans with continuing compliance requrements: $0, Total outstanding loans: $ 1,494,975 The grant funds above were passed through to the Organization from the City of Los Angeles, Community Investment for Families Department as a service repayment loan.