Audit 355923

Title: Loans Loans Guarantee Outstanding Balance Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards (the “Schedule”) are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”), wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Schedule includes the federal award activity of Bon Secours Housing, Inc. (the “Entity”) under programs of the federal government for the year ended August 31, 2024. The information in this Schedule is presented in accordance with the requirements of Uniform Guidance. Because the Schedule presents only a selected portion of the operations of the Entity, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Entity. De Minimis Rate Used: N Rate Explanation: The Entity has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The Entity is reimbursed for programmatic and administrative costs in accordance with rules set forth by the U.S. Department of Housing and Urban Development. The outstanding balance at August 31, 2024 is: Federal Award Listing CFDA Number 14.155 Program Name Mortgage Insurance for Purchase or Refinacing of Existing Multifamily Housing Projects Outstanding Balance $4 ,748,498.

Title: Federal Loan Program Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards (the “Schedule”) are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”), wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Schedule includes the federal award activity of Bon Secours Housing, Inc. (the “Entity”) under programs of the federal government for the year ended August 31, 2024. The information in this Schedule is presented in accordance with the requirements of Uniform Guidance. Because the Schedule presents only a selected portion of the operations of the Entity, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Entity. De Minimis Rate Used: N Rate Explanation: The Entity has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The Entity is reimbursed for programmatic and administrative costs in accordance with rules set forth by the U.S. Department of Housing and Urban Development. The Entity initially received a U.S. Department of Housing and Urban Development direct loan under Section 202 of the National Housing Act. In 2017 the Entity refinanced under the U.S. Department of Housing and Urban Development Section 223(f)/207 program. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. The Entity received no additional loans during the year.