Audit 356756

Title: BASIS OF ACCOUNTING Accounting Policies: The accompanying consolidated Schedule of Expenditures of Federal Awards includes the federal grant activity of The Empowerment Center and is prepared 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). Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements or other reports submitted directly to the grantor agencies. The Organization’s separately issued financial statements include the accounts and transactions of Marvel Way Apartments Manager, LLC; Marvel Way Apartments, LP; Marvel Way Apartments II Manager, LLC; and Marvel Way Apartments II, LP: • TEC is a Manager Member of Marvel Way Apartments Manager, LLC and has controlling financial interest in the LLC. • Marvel Way Apartments Manager, LLC is the general partner of Marvel Way Apartments, LP. Marvel Way Apartments, LP is operating a low-income housing project known as Marvel Way Apartments for TEC to provide additional safe and sober affordable housing for recovering addicts and alcoholics. • TEC is a Manager Member of Marvel Way Apartments II Manager, LLC and has controlling financial interest in the LLC. • Marvel Way Apartments Manager, LLC is the general partner of Marvel Way Apartments II, LP. Marvel Way Apartments, LP is constructing a second low-income housing project known as Marvel Way Apartments II for TEC to provide additional safe and sober affordable housing for recovering addicts and alcoholics. Accordingly, the Organization’s consolidated Schedule of Expenditures of Federal Awards includes the federal expenditures reported on a consolidated basis. De Minimis Rate Used: Y Rate Explanation: The Empowerment Center has elected to charge a de minimis rate of 10% of modified total direct costs for CFDA 93.788, as approved under Part 200 Uniform Guidance. The accompanying consolidated Schedule of Expenditures of Federal Awards includes the federal grant activity of The Empowerment Center and is prepared 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). Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements or other reports submitted directly to the grantor agencies.

Title: PRINCIPLES OF CONSOLIDATION Accounting Policies: The accompanying consolidated Schedule of Expenditures of Federal Awards includes the federal grant activity of The Empowerment Center and is prepared 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). Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements or other reports submitted directly to the grantor agencies. The Organization’s separately issued financial statements include the accounts and transactions of Marvel Way Apartments Manager, LLC; Marvel Way Apartments, LP; Marvel Way Apartments II Manager, LLC; and Marvel Way Apartments II, LP: • TEC is a Manager Member of Marvel Way Apartments Manager, LLC and has controlling financial interest in the LLC. • Marvel Way Apartments Manager, LLC is the general partner of Marvel Way Apartments, LP. Marvel Way Apartments, LP is operating a low-income housing project known as Marvel Way Apartments for TEC to provide additional safe and sober affordable housing for recovering addicts and alcoholics. • TEC is a Manager Member of Marvel Way Apartments II Manager, LLC and has controlling financial interest in the LLC. • Marvel Way Apartments Manager, LLC is the general partner of Marvel Way Apartments II, LP. Marvel Way Apartments, LP is constructing a second low-income housing project known as Marvel Way Apartments II for TEC to provide additional safe and sober affordable housing for recovering addicts and alcoholics. Accordingly, the Organization’s consolidated Schedule of Expenditures of Federal Awards includes the federal expenditures reported on a consolidated basis. De Minimis Rate Used: Y Rate Explanation: The Empowerment Center has elected to charge a de minimis rate of 10% of modified total direct costs for CFDA 93.788, as approved under Part 200 Uniform Guidance. The Organization’s separately issued financial statements include the accounts and transactions of Marvel Way Apartments Manager, LLC; Marvel Way Apartments, LP; Marvel Way Apartments II Manager, LLC; and Marvel Way Apartments II, LP: • TEC is a Manager Member of Marvel Way Apartments Manager, LLC and has controlling financial interest in the LLC. • Marvel Way Apartments Manager, LLC is the general partner of Marvel Way Apartments, LP. Marvel Way Apartments, LP is operating a low-income housing project known as Marvel Way Apartments for TEC to provide additional safe and sober affordable housing for recovering addicts and alcoholics. • TEC is a Manager Member of Marvel Way Apartments II Manager, LLC and has controlling financial interest in the LLC. • Marvel Way Apartments Manager, LLC is the general partner of Marvel Way Apartments II, LP. Marvel Way Apartments, LP is constructing a second low-income housing project known as Marvel Way Apartments II for TEC to provide additional safe and sober affordable housing for recovering addicts and alcoholics. Accordingly, the Organization’s consolidated Schedule of Expenditures of Federal Awards includes the federal expenditures reported on a consolidated basis.

Title: INDIRECT COST RATE Accounting Policies: The accompanying consolidated Schedule of Expenditures of Federal Awards includes the federal grant activity of The Empowerment Center and is prepared 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). Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements or other reports submitted directly to the grantor agencies. The Organization’s separately issued financial statements include the accounts and transactions of Marvel Way Apartments Manager, LLC; Marvel Way Apartments, LP; Marvel Way Apartments II Manager, LLC; and Marvel Way Apartments II, LP: • TEC is a Manager Member of Marvel Way Apartments Manager, LLC and has controlling financial interest in the LLC. • Marvel Way Apartments Manager, LLC is the general partner of Marvel Way Apartments, LP. Marvel Way Apartments, LP is operating a low-income housing project known as Marvel Way Apartments for TEC to provide additional safe and sober affordable housing for recovering addicts and alcoholics. • TEC is a Manager Member of Marvel Way Apartments II Manager, LLC and has controlling financial interest in the LLC. • Marvel Way Apartments Manager, LLC is the general partner of Marvel Way Apartments II, LP. Marvel Way Apartments, LP is constructing a second low-income housing project known as Marvel Way Apartments II for TEC to provide additional safe and sober affordable housing for recovering addicts and alcoholics. Accordingly, the Organization’s consolidated Schedule of Expenditures of Federal Awards includes the federal expenditures reported on a consolidated basis. De Minimis Rate Used: Y Rate Explanation: The Empowerment Center has elected to charge a de minimis rate of 10% of modified total direct costs for CFDA 93.788, as approved under Part 200 Uniform Guidance. The Empowerment Center has elected to charge a de minimis rate of 10% of modified total direct costs for CFDA 93.788, as approved under Part 200 Uniform Guidance.