Audit 351303

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 as to reimbursement. De Minimis Rate Used: N Rate Explanation: UDA Dempsey, LLC has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of UDA Dempsey, LLC 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 UDA Dempsey, LLC, it is not intended to and does not present the financial position, changes in net assets, or cash flows of UDA Dempsey, LLC.

Title: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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. De Minimis Rate Used: N Rate Explanation: UDA Dempsey, LLC has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. 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: DE MINIMIS COST RATE 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. De Minimis Rate Used: N Rate Explanation: UDA Dempsey, LLC has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. UDA Dempsey, LLC has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.

Title: LOAN BALANCES 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. De Minimis Rate Used: N Rate Explanation: UDA Dempsey, LLC has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The Department of Housing and Urban Development loan program is administered directly by UDA Dempsey, LLC, and balances and transactions relating to the program are included in UDA Dempsey, LLC’s financial statements. Loans outstanding at the beginning of the year and loans made during the year are included in the federal expenditures presented in the schedule. The balances of loans outstanding at June 30, 2024, consist of: AL Number Federal Program Name Outstanding Balance at June 30, 2024 14.155 Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects $2,880,366 14.155 Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects 875,988