Audit 361317

Title: Basis of Presentation Accounting Policies: Summary of Significant Accounting Policies 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. De Minimis Rate Used: N Rate Explanation: Indirect Cost Mother of Mercy d/b/a Mother of Mercy Senior Living and Affiliates has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Mother of Mercy d/b/a Mother of Mercy Senior Living and Affiliates. The information in this Schedule is presented in accordance with requirements of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the “Uniform Guidance”). Because the Schedule presents only a selected portion of the operations of Mother of Mercy d/b/a Mother of Mercy Senior Living and Affiliates, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Mother of Mercy d/b/a Mother of Mercy Senior Living and Affiliates. Federal award activity of Mother of Mercy (Taxpayer Identification Number (TIN) 41-6051127), Mother of Mercy Development, LLC (TIN 27-3818447), and Mother of Mercy Foundation (TIN 41-1992053) is included in the attached Schedule. The consolidated financial statements of Mother of Mercy d/b/a Mother of Mercy Senior Living and Affiliates also includes the operations of Mercy Manor and Mercy Manor II, which received $66,337 and $60,986, respectively, in federal awards during 2022 and had $2,609,700 and $2,252,100, respectively, in capital advance mortgage balances outstanding that were considered to be federal awards. These amounts are not included in the attached Schedule because each entity is required to have separate audits performed under the Uniform Guidance.

Title: Subrecipients Accounting Policies: Summary of Significant Accounting Policies 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. De Minimis Rate Used: N Rate Explanation: Indirect Cost Mother of Mercy d/b/a Mother of Mercy Senior Living and Affiliates has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Mother of Mercy d/b/a Mother of Mercy Senior Living and Affiliates passed no federal awards through to subrecipients.

Title: Community Facilities Loans Accounting Policies: Summary of Significant Accounting Policies 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. De Minimis Rate Used: N Rate Explanation: Indirect Cost Mother of Mercy d/b/a Mother of Mercy Senior Living and Affiliates has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Mother of Mercy d/b/a Mother of Mercy Senior Living and Affiliates has an outstanding loan with the U.S. Department of Agriculture. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. Mother of Mercy d/b/a Mother of Mercy Senior Living and Affiliates received no additional loans during the year. The balance of the loan balance at September 30, 2024, is $2,853,570.