Audit 352872

Title: Note 1. Basis of Presentation Accounting Policies: Note 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. 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: KN5AEKZ93CL6 The accompanying Schedule of Expenditures of Federal Awards (the "Schedule") includes the federal loan activity and award activity of Hattiesburg Area Senior Services, Inc., d/b/a Wesley Manor I, HUD Project No. 065-EH084 (the "Company") under programs of the federal government for the year ended December 31, 2024. 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 Company, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Company.

Title: Note 4. Federal Loan Program Accounting Policies: Note 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. 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: KN5AEKZ93CL6 The federal loan program listed subsequently is administered directly by the Company, and balances and transactions relating to this program are included in the Company's basic 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 loan balance outstanding at December 31, 2024, consists of: Assistance Listing Number Program Name Outstanding Balance December 31, 2024 14.157 Supportive Housing for the Elderly (Section 202) $ 234,862