Audit 362314

Title: LOAN BALANCE Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Step Up On Second Street, Inc. and Subsidiaries (the Organization) under programs of the federal government for the year ended June 30, 2023. 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 operations of the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization. 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 limited as to reimbursement. Pass- through entity identifying numbers are presented where available and applicable. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The federal award of $400,000 from Assistance Listing 14.235 is a loan. Loans outstanding at the beginning of the year and loans made during the year are included in the federal expenditures represented in the Schedule. There were no new loans made during the year, and the amount reported as federal expenditures is the same as the June 30, 2022 balance. The federal award of $1,301,370 from Assistance Listing 14.239 is a loan. Loans outstanding at the beginning of the year and loans made during the year are included in the federal expenditures represented in the Schedule. There were no new loans made during the year and the amount reported as federal expenditures is the same as the June 30, 2022 balance.