Audit 356600

Title: NOTE 1 - BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the schedule are reported on the modified cash basis of accounting, which is a comprehensive basis of accounting other than generally accepted accounting principles (GAAP). Under this basis, certain expenditures are recognized when paid rather than when the obligation is incurred. 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. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. The accompanying schedule of expenditures of federal awards (“the schedule”) includes the federal award activity of ShoreRivers, Inc. (“the Organization”) under programs of the federal government for the year ended December 31, 2024. The information in the 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 Organization’s operations, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization as of and for the year ended December 31, 2024.

Title: NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Expenditures reported on the schedule are reported on the modified cash basis of accounting, which is a comprehensive basis of accounting other than generally accepted accounting principles (GAAP). Under this basis, certain expenditures are recognized when paid rather than when the obligation is incurred. 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. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. Basis of Accounting Expenditures reported on the schedule are reported on the modified cash basis of accounting, which is a comprehensive basis of accounting other than generally accepted accounting principles (GAAP). Under this basis, certain expenditures are recognized when paid rather than when the obligation is incurred. 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. Indirect Costs The Organization has elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance, for the Organization does not have approved indirect cost rates stipulated by its federal grant agreements.