Audit 354601

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. Illyrian Gardens, Inc. has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Illyrian Gardens, Inc. has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards includes the federal award activity of Illyrian Gardens, Inc. 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, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Illyrian Gardens, Inc. it is not intended to and does not present the financial position, changes in net assets, or cash flows of Illyrian Gardens, Inc.

Title: NOTE 3 – U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT MAJOR 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. Illyrian Gardens, Inc. has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Illyrian Gardens, Inc. has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Illyrian Gardens, Inc. has received a U.S. Department of Housing and Urban Development Section 8 Housing Assistance Payments Program Contract. Illyrian Gardens, Inc. received no additional loans during the year. The total Housing Assistance Payments received at December 31, 2023 consists of: Assistance Listing Assistance Received at Number Program Name December 31, 2023 14.195 Section 8 Housing Assistance $983,288 Payments (HAP) Program

Title: NOTE 4 - FINDING OF NONCOMPLIANCE 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. Illyrian Gardens, Inc. has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Illyrian Gardens, Inc. has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. There were no findings of noncompliance identified in connection with the Corporation’s single audit for the year ended December 31, 2023.