Audit 352364

Title: NOTE A - 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 principle contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Project is governed by the rules and regulations of the U.S.Department of Housing and Urban Development (HUD). The use of the 10-percent the minimis indirect cost rate allowed under the Uniform Guidance does not apply. Disaster Grants -Public Assistance (FEMA): Expenditures are recognized in the period when: (1) FEMA has approved the PW, and (2) eligible expenditures are incurred. De Minimis Rate Used: N Rate Explanation: The auditee has not elected to use the 10% de minimis indirect cost rate. The accompanying schedule of expenditures of federal awards includes the federal grants activity of this Project and is presented on the accrual basis of accounting. 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 for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of operations of the Project, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Project.

Title: NOTE C - U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT ADVANCE CAPITAL PROGRAM Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principle contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Project is governed by the rules and regulations of the U.S.Department of Housing and Urban Development (HUD). The use of the 10-percent the minimis indirect cost rate allowed under the Uniform Guidance does not apply. Disaster Grants -Public Assistance (FEMA): Expenditures are recognized in the period when: (1) FEMA has approved the PW, and (2) eligible expenditures are incurred. De Minimis Rate Used: N Rate Explanation: The auditee has not elected to use the 10% de minimis indirect cost rate. The Project has received a U.S. Department of Housing and Urban Development direct loan under Section 202 of the National Housing Act. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. The Project received no additional loan during the year. The balance of this loan was paid off during the year ended June 30, 2024.

Title: NOTE D - CLUSTER Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principle contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Project is governed by the rules and regulations of the U.S.Department of Housing and Urban Development (HUD). The use of the 10-percent the minimis indirect cost rate allowed under the Uniform Guidance does not apply. Disaster Grants -Public Assistance (FEMA): Expenditures are recognized in the period when: (1) FEMA has approved the PW, and (2) eligible expenditures are incurred. De Minimis Rate Used: N Rate Explanation: The auditee has not elected to use the 10% de minimis indirect cost rate. See the Notes to the SEFA for chart/table.

Title: NOTE E - SINGLE AUDIT SUBMISSION FOR THE YEAR ENDED JUNE 30, 2023 Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principle contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Project is governed by the rules and regulations of the U.S.Department of Housing and Urban Development (HUD). The use of the 10-percent the minimis indirect cost rate allowed under the Uniform Guidance does not apply. Disaster Grants -Public Assistance (FEMA): Expenditures are recognized in the period when: (1) FEMA has approved the PW, and (2) eligible expenditures are incurred. De Minimis Rate Used: N Rate Explanation: The auditee has not elected to use the 10% de minimis indirect cost rate. The Project has not submitted the single audit report for the year ended June 30, 2023 to the Federal Audit Clearinghouse (FAC) website, as required under 2 CFR part 200, subpart F. The deadline for this submission was March 31, 2024. As represented by the management of the Project, they have attempted to submit the report to the FAC’s website but they have not been able to complete the process due to technical problems in the website. The situation has been brought to the attention of the FAC’s officials, but it has not been possible to resolve it.