Audit 359316

Title: NOTE A – BASIS OF PRESENTATION Accounting Policies: Accrual basis of accounting De Minimis Rate Used: N Rate Explanation: No cost rate was used The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Dunes Community Development District, Flagler County, Florida (the “District”), under a program of the federal government for the year ended September 30, 2024. The information in this schedule is presented in accordance with the requirements of Title 2 Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements of Federal Awards (the “Uniform Guidance”). Because the Schedule presents only a selected portion of the operations of the District, it is not intended to and does not present the financial position, changes in net position or cash flows of the District. All of the District’s federal award was in the form of cash assistance for the year ended September 30, 2024.

Title: NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Accrual basis of accounting De Minimis Rate Used: N Rate Explanation: No cost rate was used Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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. Additionally, the District did not elect to use the 10 percent de minimis indirect cost rate.