Audit 350457

Title: 1 Accounting Policies: NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2024 1. BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Lighthouse MI, (the Organization) under the 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 Lighthouse MI, it is not intended to and does not present the consolidated financial position, consolidated changes in net assets, or consolidated cash flows of Lighthouse MI. 2. SUMMARY OF SIGNIFICANT 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 as to reimbursement. 3. RECONCILIATION TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS The following table reconciles the grants and contracts revenue per the Lighthouse MI consolidated financial statements for the year ended June 30, 2024, to the total on the Schedule: Total government grants per statement of activities $ 4,906,268 Less: Non-federal items 190,137 Total expenditures per the Schedule $ 4,716,131 The Organization receives certain federal grants as subawards from non-federal entities. Pass-through entities, where applicable, have been identified in the Schedule with an abbreviation, defined as follows: Abbreviations Pass-Through Agency Names MSHDA Michigan State Housing Development Authority NW NeighborWorks Oakland Oakland County, Michigan MDHHS Michigan Department of Health and Human Services Southfield City of Southfield, Michigan Farmington City of Farmington, Michigan Royal Oak City of Royal Oak, Michigan 4. INDIRECT COST RATE The Organization has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Indirect costs are included in the grant budget submitted for approval. 1. BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Lighthouse MI, (the Organization) under the 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 Lighthouse MI, it is not intended to and does not present the consolidated financial position, consolidated changes in net assets, or consolidated cash flows of Lighthouse MI.

Title: 2 Accounting Policies: NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2024 1. BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Lighthouse MI, (the Organization) under the 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 Lighthouse MI, it is not intended to and does not present the consolidated financial position, consolidated changes in net assets, or consolidated cash flows of Lighthouse MI. 2. SUMMARY OF SIGNIFICANT 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 as to reimbursement. 3. RECONCILIATION TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS The following table reconciles the grants and contracts revenue per the Lighthouse MI consolidated financial statements for the year ended June 30, 2024, to the total on the Schedule: Total government grants per statement of activities $ 4,906,268 Less: Non-federal items 190,137 Total expenditures per the Schedule $ 4,716,131 The Organization receives certain federal grants as subawards from non-federal entities. Pass-through entities, where applicable, have been identified in the Schedule with an abbreviation, defined as follows: Abbreviations Pass-Through Agency Names MSHDA Michigan State Housing Development Authority NW NeighborWorks Oakland Oakland County, Michigan MDHHS Michigan Department of Health and Human Services Southfield City of Southfield, Michigan Farmington City of Farmington, Michigan Royal Oak City of Royal Oak, Michigan 4. INDIRECT COST RATE The Organization has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Indirect costs are included in the grant budget submitted for approval. 2. SUMMARY OF SIGNIFICANT 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 as to reimbursement.

Title: 3 Accounting Policies: NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2024 1. BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Lighthouse MI, (the Organization) under the 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 Lighthouse MI, it is not intended to and does not present the consolidated financial position, consolidated changes in net assets, or consolidated cash flows of Lighthouse MI. 2. SUMMARY OF SIGNIFICANT 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 as to reimbursement. 3. RECONCILIATION TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS The following table reconciles the grants and contracts revenue per the Lighthouse MI consolidated financial statements for the year ended June 30, 2024, to the total on the Schedule: Total government grants per statement of activities $ 4,906,268 Less: Non-federal items 190,137 Total expenditures per the Schedule $ 4,716,131 The Organization receives certain federal grants as subawards from non-federal entities. Pass-through entities, where applicable, have been identified in the Schedule with an abbreviation, defined as follows: Abbreviations Pass-Through Agency Names MSHDA Michigan State Housing Development Authority NW NeighborWorks Oakland Oakland County, Michigan MDHHS Michigan Department of Health and Human Services Southfield City of Southfield, Michigan Farmington City of Farmington, Michigan Royal Oak City of Royal Oak, Michigan 4. INDIRECT COST RATE The Organization has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Indirect costs are included in the grant budget submitted for approval. 3. RECONCILIATION TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS The following table reconciles the grants and contracts revenue per the Lighthouse MI consolidated financial statements for the year ended June 30, 2024, to the total on the Schedule: Total government grants per statement of activities $ 4,906,268 Less: Non-federal items 190,137 Total expenditures per the Schedule $ 4,716,131 The Organization receives certain federal grants as subawards from non-federal entities. Pass-through entities, where applicable, have been identified in the Schedule with an abbreviation, defined as follows: Abbreviations Pass-Through Agency Names MSHDA Michigan State Housing Development Authority NW NeighborWorks Oakland Oakland County, Michigan MDHHS Michigan Department of Health and Human Services Southfield City of Southfield, Michigan Farmington City of Farmington, Michigan Royal Oak City of Royal Oak, Michigan

Title: 4 Accounting Policies: NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2024 1. BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Lighthouse MI, (the Organization) under the 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 Lighthouse MI, it is not intended to and does not present the consolidated financial position, consolidated changes in net assets, or consolidated cash flows of Lighthouse MI. 2. SUMMARY OF SIGNIFICANT 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 as to reimbursement. 3. RECONCILIATION TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS The following table reconciles the grants and contracts revenue per the Lighthouse MI consolidated financial statements for the year ended June 30, 2024, to the total on the Schedule: Total government grants per statement of activities $ 4,906,268 Less: Non-federal items 190,137 Total expenditures per the Schedule $ 4,716,131 The Organization receives certain federal grants as subawards from non-federal entities. Pass-through entities, where applicable, have been identified in the Schedule with an abbreviation, defined as follows: Abbreviations Pass-Through Agency Names MSHDA Michigan State Housing Development Authority NW NeighborWorks Oakland Oakland County, Michigan MDHHS Michigan Department of Health and Human Services Southfield City of Southfield, Michigan Farmington City of Farmington, Michigan Royal Oak City of Royal Oak, Michigan 4. INDIRECT COST RATE The Organization has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Indirect costs are included in the grant budget submitted for approval. 4. INDIRECT COST RATE The Organization has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.