Audit 354602

Title: NOTE 1 - BASIS OF PRESENTATION Accounting Policies: Section 8 Housing Assistance Payments (HAP) Program 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 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Section 8 Housing Assistance Payments (HAP) Program 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. 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.

Title: NOTE 3 - U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT LOAN PROGRAM Accounting Policies: Section 8 Housing Assistance Payments (HAP) Program 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, 2024 consists of:

Title: NOTE 3 - U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT LOAN PROGRAM Accounting Policies: Section 8 Housing Assistance Payments (HAP) Program 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. Assistance Listing Number Program Name Assistance Received at December 31, 2024 14. 195 Section 8 Housing Assistant $1,005,456 Payments (HAP) Program

Title: NOTE 4 - FINDING OF NONCOMPLIANCE Accounting Policies: Section 8 Housing Assistance Payments (HAP) Program 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, 2024.