Audit 359215

Title: 1 Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes all federal grant activity of Spruce Root, Inc. under programs of the federal government for the year ended December 31, 2024. The information in this schedule is presented in accordance with the requirements of the 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 Spruce Root, Inc., it is not intended to and does not present the financial position, changes in net assets or cash flows of Spruce Root, Inc. Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following 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: Spruce Root, Inc. has elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Basis of Presentation

Title: 2 Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes all federal grant activity of Spruce Root, Inc. under programs of the federal government for the year ended December 31, 2024. The information in this schedule is presented in accordance with the requirements of the 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 Spruce Root, Inc., it is not intended to and does not present the financial position, changes in net assets or cash flows of Spruce Root, Inc. Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following 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: Spruce Root, Inc. has elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Expenditures