Audit 343208

Title: Basis of Presentation Accounting Policies: 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 are limited in reimbursement. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: Valley Economic Development Partners, Inc. and Related Entities did not elect to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of Valley Economic Development Partners, Inc. and Related Entities under programs of the federal government for the year ended December 31, 2023. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations ("CFR") 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 Organizations, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Valley Economic Development Partners, Inc. and Related Entities.

Title: Federal Revolving Loan Funds and Loans Outstanding Accounting Policies: 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 are limited in reimbursement. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: Valley Economic Development Partners, Inc. and Related Entities did not elect to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Federal activity from the U.S. Department of Commerce (Assistance Listing #11.307) represents the federal share of the revolving loan fund balances loaned to third parties and cash and investment balances and administrative expenses paid in the revolving loan fund at year-end as required by the compliance supplement. Total expenditures at December 31, 2023 were calculated as follows: Federal activity from the Community Development Financial Institutions Fund Equitable Recovery Program (Assistance Listing #21.033) represents the beginning of the year balance of the loan payable plus new loans made or received during the year plus cash on hand for the program. New loans totaling $2,162,900 were made during 2023. The balance of loans payable outstanding at December 31, 2023 was $2,079,071. Federal activity from COVID-19 Coronavirus Relief Fund (Assistance Listing #21.027) represents the January 1, 2023 loan payable balances for each program plus new loans made or received during the year plus cash on hand for the programs. New loans totaling $4,397,958 were made to these funds during 2023. The balance of loans payable outstanding at December 31, 2023 was $6,257,996 for these programs. Federal activity from the U.S. Small Business Administration ILP (Assistance Listing #59.062) represents the beginning of the year balance of the loan payable plus new loans made or received during the year plus cash on hand for the program. New loans totaling $35,800 were made during 2023. The balance of loans payable outstanding at December 31, 2023 was $531,725. Federal activity from the Department of Agriculture IRP (Assistance Listing #10.767) represents the beginning of the year balance of the loan payable plus cash on hand for the program. New loans totaling $161,000 were made during 2023. The balance of loans payable outstanding at December 31, 2023 was $792,083.