Audit 364123

Title: Capital Advance Accounting Policies: Basis of Presentation - The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal award activity of Gardner Commons Development Corporation (the “Organization”) and is presented on the accrual basis of accounting. The information in this Schedule is presented 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. 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. De Minimis Rate Used: N Rate Explanation: The Organization has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. As disclosed in the notes to the financial statements the Organization has recognized the capital advance mortgage, in the amount of $3,538,300, as a contribution in a prior year. However, as the capital advance requires repayment should the Organization not comply with the Regulatory Agreement or other required regulations and has continuing compliance requirements, the outstanding balance totaling $3,538,300 as of June 30, 2024 has been included in the schedule of expenditures of federal awards.