Audit 345007

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, where certain types of expenditures are not allowed or are limited as to reimbursement. Negative amounts shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards includes the federal grant activity of York Area Development Corporation (the Corporation), which includes the wholly-owned divisions of Green Meadow Apartments and Highland Manor Apartments, and its wholly-owned subsidiary (collectively, the Organization): Affordable Housing Partners of York, Inc. (includes subsidiaries AHP York Inc. and 381 Associates), under programs of the federal government for the year ended June 30, 2023. 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 the Organization it is not intended to and does not present the consolidated financial position, changes in net assets, or cash flows of the Organization. For the year ended June 30, 2023, Affordable Housing Partners of York, Inc. and AHP York, Inc. had no expenditures of federal awards. For the year ended June 30, 2023, Affordable Housing Partners of York, Inc. and AHP York, Inc. had no expenditures of federal awards.

Title: FEDERAL LOAN PROGRAMS 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, where certain types of expenditures are not allowed or are limited as to reimbursement. Negative amounts shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The federal loan programs listed subsequently are administered directly by the Organization, and balances and transactions relating to these programs are included in the Organization’s basic consolidated financial statements. The outstanding loan balances at the beginning of the year are included in the federal expenditures presented in the schedule. The outstanding loan balances at June 30, 2023 consist of the following: Assistance Listing Number 10.415, Rural Rental Housing Loans – Loan Guarantees Outstanding, $3,345,206.