Audit 342646

Title: Loans Accounting Policies: The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of Larkin Street Youth Services ("Larkin Street") under programs of the federal government for the year ended June 30, 2024. 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 Larkin Street, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Larkin Street. 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 limited as to reimbursement. Passthrough entity identifying numbers are presented where available and applicable. De Minimis Rate Used: N Rate Explanation: Larkin Street has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Federal awards received under the Housing Opportunities for Persons with AIDS (HOPWA) loan are in the form of a loan for a period of 50 years (through 2046). The loan is secured by the property and assignment of rents. The loan obligation will be waived at the end of the loan term providing that Larkin Street has complied with all the terms of the agreement and the loan is not in default. In the event of default, principal and interest, at 10% per annum, will be charged for the period from initial borrowing through the date of repayment of the loan. The amount of the HOPWA loan represents the balance outstanding at the beginning of the year. Federal awards were received under the CDBG Grant loan (the Loan) received by a predecessor organization that operated an eight-unit residential building located at 538 Holloway. The Loan was originally received by that organization in 2003, with a maturity term of 75 years. In August 2008, Larkin Street assumed the Loan and operations of the property. The Loan is secured by the property and assignment of rents. The principal will be due upon maturity of the note providing that Larkin Street has complied with all the terms of the agreement and the Loan is not in default. In the event of default, the principal will become due immediately. The amount of the loan represents the balance outstanding at the beginning of the year.