Audit 356446

Title: Note 1 - Basis of Presentation Accounting Policies: Note 1 - Basis of Presentation The accompanying schedule of expenditures of federal and state awards (the “Schedule”) includes the federal and state grant activity of the Garden State Community Development Corporation under programs of the federal and state 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 Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal awards (Uniform Guidance) and New Jersey Office of Management and Budget Circular 15-08, “Single Audit Policy for Recipients of Federal Grants, State Grants, and State Aid” (NJ OMB Circular 15-08). Because the Schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Organization. The Schedule includes only the federal and state expenditures of Garden State Community Development Corporation and does not include those of its subsidiary or a certain affiliated entities that are not presented in the consolidated financial statements and were not subject to this audit. The Schedule also excludes the activity of one affiliate, which is presented in the consolidated financial statements but was not subject to this audit. Note 2 - Summary of Significant Accounting Policies Basis of Presentation Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Administrative Requirements (CFR) Part 200, Cost Principles for Non-Profit Organizations, and the New Jersey OMB Circular 15-08, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through Entities Pass-through entity identifying numbers are presented where available. Federal and State Loans Federal and State loan balances reflected in the schedule include the beginning balance and current year expenditures. 10% De Minimis Indirect Cost Rate The Organization has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Note 3 - U.S. Department of Housing and Urban Development Loan Program Garden State Community Development Corporation has received U.S Department of Housing and Urban Development capital advances under Home Investment Partnerships Program and Hurricane Sandy Community Development Block Grant Disaster Recovery Grants (CDBG-DR). The capital advance balance outstanding at the beginning of the year is included in federal expenditures presented in the Schedule. The Organization received additional loans during the year. The balance of the loans outstanding at December 31, 2024 is $9,648,610. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal and state awards (the “Schedule”) includes the federal and state grant activity of the Garden State Community Development Corporation under programs of the federal and state 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 Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal awards (Uniform Guidance) and New Jersey Office of Management and Budget Circular 15-08, “Single Audit Policy for Recipients of Federal Grants, State Grants, and State Aid” (NJ OMB Circular 15-08). Because the Schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Organization. The Schedule includes only the federal and state expenditures of Garden State Community Development Corporation and does not include those of its subsidiary or a certain affiliated entities that are not presented in the consolidated financial statements and were not subject to this audit. The Schedule also excludes the activity of one affiliate, which is presented in the consolidated financial statements but was not subject to this audit.

Title: Note 2 - Summary of Significant Accounting Policies Accounting Policies: Note 1 - Basis of Presentation The accompanying schedule of expenditures of federal and state awards (the “Schedule”) includes the federal and state grant activity of the Garden State Community Development Corporation under programs of the federal and state 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 Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal awards (Uniform Guidance) and New Jersey Office of Management and Budget Circular 15-08, “Single Audit Policy for Recipients of Federal Grants, State Grants, and State Aid” (NJ OMB Circular 15-08). Because the Schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Organization. The Schedule includes only the federal and state expenditures of Garden State Community Development Corporation and does not include those of its subsidiary or a certain affiliated entities that are not presented in the consolidated financial statements and were not subject to this audit. The Schedule also excludes the activity of one affiliate, which is presented in the consolidated financial statements but was not subject to this audit. Note 2 - Summary of Significant Accounting Policies Basis of Presentation Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Administrative Requirements (CFR) Part 200, Cost Principles for Non-Profit Organizations, and the New Jersey OMB Circular 15-08, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through Entities Pass-through entity identifying numbers are presented where available. Federal and State Loans Federal and State loan balances reflected in the schedule include the beginning balance and current year expenditures. 10% De Minimis Indirect Cost Rate The Organization has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Note 3 - U.S. Department of Housing and Urban Development Loan Program Garden State Community Development Corporation has received U.S Department of Housing and Urban Development capital advances under Home Investment Partnerships Program and Hurricane Sandy Community Development Block Grant Disaster Recovery Grants (CDBG-DR). The capital advance balance outstanding at the beginning of the year is included in federal expenditures presented in the Schedule. The Organization received additional loans during the year. The balance of the loans outstanding at December 31, 2024 is $9,648,610. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Basis of Presentation Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Administrative Requirements (CFR) Part 200, Cost Principles for Non-Profit Organizations, and the New Jersey OMB Circular 15-08, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through Entities - Pass-through entity identifying numbers are presented where available. Federal and State Loans - Federal and State loan balances reflected in the schedule include the beginning balance and current year expenditures. 10% De Minimis Indirect Cost Rate - The Organization has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.

Title: Note 3 - U.S. Department of Housing and Urban Development Loan Program Accounting Policies: Note 1 - Basis of Presentation The accompanying schedule of expenditures of federal and state awards (the “Schedule”) includes the federal and state grant activity of the Garden State Community Development Corporation under programs of the federal and state 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 Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal awards (Uniform Guidance) and New Jersey Office of Management and Budget Circular 15-08, “Single Audit Policy for Recipients of Federal Grants, State Grants, and State Aid” (NJ OMB Circular 15-08). Because the Schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Organization. The Schedule includes only the federal and state expenditures of Garden State Community Development Corporation and does not include those of its subsidiary or a certain affiliated entities that are not presented in the consolidated financial statements and were not subject to this audit. The Schedule also excludes the activity of one affiliate, which is presented in the consolidated financial statements but was not subject to this audit. Note 2 - Summary of Significant Accounting Policies Basis of Presentation Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Administrative Requirements (CFR) Part 200, Cost Principles for Non-Profit Organizations, and the New Jersey OMB Circular 15-08, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through Entities Pass-through entity identifying numbers are presented where available. Federal and State Loans Federal and State loan balances reflected in the schedule include the beginning balance and current year expenditures. 10% De Minimis Indirect Cost Rate The Organization has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Note 3 - U.S. Department of Housing and Urban Development Loan Program Garden State Community Development Corporation has received U.S Department of Housing and Urban Development capital advances under Home Investment Partnerships Program and Hurricane Sandy Community Development Block Grant Disaster Recovery Grants (CDBG-DR). The capital advance balance outstanding at the beginning of the year is included in federal expenditures presented in the Schedule. The Organization received additional loans during the year. The balance of the loans outstanding at December 31, 2024 is $9,648,610. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Garden State Community Development Corporation has received U.S Department of Housing and Urban Development capital advances under Home Investment Partnerships Program and Hurricane Sandy Community Development Block Grant Disaster Recovery Grants (CDBG-DR). The capital advance balance outstanding at the beginning of the year is included in federal expenditures presented in the Schedule. The Organization received additional loans during the year. The balance of the loans outstanding at December 31, 2024 is $9,648,610.