Audit 363701

Title: NOTE 1 - BASIS OF PRESENTATION Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) presents the federal grant expenditures of LCE for the year ended December 31, 2024. The Schedule was prepared on the accrual basis of accounting and is in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (“CFR”) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”). Because the Schedule presents only a portion of the operations of LCE, it is not intended to and does not present the financial position, changes in net assets or cash flows of LCE. Therefore, some amounts presented in the Schedule may differ from amounts presented in the financial statements. De Minimis Rate Used: N Rate Explanation: LCE did not utilize the 10% de minimis indirect cost rate described in 2 CFR 200.414, Indirect (F&A) Costs of the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the “Schedule”) presents the federal grant expenditures of LCE for the year ended December 31, 2024. The Schedule was prepared on the accrual basis of accounting and is in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (“CFR”) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”). Because the Schedule presents only a portion of the operations of LCE, it is not intended to and does not present the financial position, changes in net assets or cash flows of LCE. Therefore, some amounts presented in the Schedule may differ from amounts presented in the financial statements. Funding from the District of Columbia Department of Aging and Community Living (“DACL”) includes both federal pass-through and District of Columbia funds. Due to the nature of the award, LCE is unable to separately track the two funding sources in its joint program books and records. For the presentation of the accompanying schedule of expenditures of federal awards, LCE has consistently estimated the allocation between federal and non-federal sources based on the percentage of funding coming from federal sources as a percentage of total funds for each spending category as stipulated specifically within the grant agreements. These commingled funds originated from the following sources:

Title: NOTE 2 - INDIRECT COSTS Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) presents the federal grant expenditures of LCE for the year ended December 31, 2024. The Schedule was prepared on the accrual basis of accounting and is in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (“CFR”) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”). Because the Schedule presents only a portion of the operations of LCE, it is not intended to and does not present the financial position, changes in net assets or cash flows of LCE. Therefore, some amounts presented in the Schedule may differ from amounts presented in the financial statements. De Minimis Rate Used: N Rate Explanation: LCE did not utilize the 10% de minimis indirect cost rate described in 2 CFR 200.414, Indirect (F&A) Costs of the Uniform Guidance. LCE did not utilize the 10% de minimis indirect cost rate described in 2 CFR 200.414, Indirect (F&A) Costs of the Uniform Guidance.