Audit 365306

Title: ORGANIZATION Accounting Policies: NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES FINANCIAL STATEMENT PRESENTATION Net assets are classified based on the existence or absence of donor-imposed restrictions. Accordingly, net assets and changes therein are classified and reported as follows: Net Assets Without Donor Restrictions Net assets available for use in general operations and not subject to donor restrictions. Net Assets With Donor Restrictions Net assets subject to donor-imposed restrictions. Some donor restrictions are temporary in nature, such as those that will be met by the passage of time or other events specified by the donor. Other donor-imposed restrictions are perpetual in nature, where the donor stipulates that resources be maintained in perpetuity. Donor-imposed restrictions are released when a restriction expires, that is when the stipulated time has elapsed, when the stipulated purpose for which the resource was restricted has been fulfilled, or both. BASIS OF ACCOUNTING GNDC uses the accrual method of accounting which recognizes revenue when earned and expenses when incurred. RESTRICTED CASH At 31 December 2024 and 2023, GNDC has restricted cash of $864,505 and 263,407, respectively, which is held in escrow by the lender for replacement reserves, working capital, operating deficit, and completion assurance. These funds are required to be held in a separate account. The following table provides a reconciliation of cash and restricted cash reported within the statements of financial position to the sum of the corresponding amounts within the statements of cash flows. 2024 2023 Cash $2,265,126 $3,453,630 Restricted cash held in escrow 864,505 263,407 $3,129,631 $3,717,037 REVENUE Unconditional grants and contributions received are recorded at fair value on the date of the award as with donor restrictions or without donor restrictions depending on the existence and/or nature of any donor-imposed restrictions. FORGIVENESS OF INTEREST GNDC has several forgivable loans with stated interest rates of zero percent. Interest related to these loans is considered forgiven annually if GNDC is in compliance with the terms of the loan agreements. The forgiven interest is calculated using a market rate of 5%. RENTAL OPERATIONS GNDC leases its real estate properties as single family residences, duplexes, and apartment complexes under operating leases that are cancellable with 30 days notice. Generally, these leases have twelve month terms, automatically renewing on a month-to-month basis thereafter. Tenants pay a monthly rate established in lease agreements. FEE FOR SERVICE CONTRACT Revenue under the fee for service contract is earned upon completion of set objectives and deliverables defined in the contract. PROPERTY SALES Revenue from property sales is recognized at a point in time upon completion of the sale when the title of the property transfers to the customer. Payment is due upon completion of the sale. The sales price is established in the purchase agreements. There is typically no financing component because payments are received within one year of the sale. SUBSEQUENT EVENTS Management of GNDC has evaluated subsequent events for disclosure through the date of the Independent Auditor’s Report, the date the consolidated financial statements were available to be issued. ESTIMATES The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. FUNCTIONAL EXPENSE ALLOCATION The consolidated financial statements report certain categories of expenses that are attributed to more than one program or supporting function. Therefore, expenses require allocation on a reasonable basis that is consistently applied. The expenses that are allocated are depreciation, payroll, insurance, utilities, legal, loss on transfer, and other, which are allocated based on personnel time spent on each area as estimated by management. NOTES RECEIVABLE Notes receivable are stated at the principal amount outstanding. Interest income on notes receivable is recognized over the term of the note and is computed using the simple interest method on principal amounts outstanding. INCOME TAXES In accordance with Section 501(c)(3) of the Internal Revenue Code, GNDC is exempt from federal income taxes. Consequently, no provision for Federal income taxes is included in the accompanying consolidated financial statements. Guadalupe-Saldana, Guadalupe Jeremiah, de Lopez, GFC, and Escuela Nueva have elected to be taxed as limited partnerships. Under such elections, federal taxable income or loss and tax credits are passed through to the individual partners. Texas state taxes are imposed at the entity level. Any federal taxes due by GNDC, as the general partner, or any state taxes due by the limited partnerships, are recognized in the financial statements when incurred, as tax expense and tax liability. GNDC’s policy is to record interest and penalties related to income taxes as interest and other expense and federal or state taxes as tax expense. FIXED ASSETS Acquisitions of property and equipment valued at $1,000 or more and a useful life greater than one year are capitalized at cost if purchased, or estimated fair market value on the date of donation, if contributed. Repairs and maintenance costs are expended as incurred. Depreciation is computed using the straight-line method based on the estimated useful life of the asset, which is 5 years for furniture and equipment and 20 years for infrastructure. RENTAL REAL ESTATE Rental real estate consists of land, housing units, and closing costs. Rental real estate is capitalized at cost, which includes the cost of preacquisition, acquisition, development, and construction. Housing units leased are depreciated using the straight-line method based on an estimated useful life of 25 years. Housing units leased and held for sale are restricted for rental and sales to families with low incomes. Housing units held for sale are set to be sold to families with low income in subsequent years. Upon the sale of housing units, the difference between the cost and sale proceeds results in a net gain or loss. De Minimis Rate Used: N Rate Explanation: Elected not to use Guadalupe Neighborhood Development Corporation (GNDC) is a Texas nonprofit corporation set up to provide affordable housing to families in the Austin area with very low to moderate incomes. In 2005, GNDC established a new entity and became the sole member of GNDC GP, LLC. In turn, GNDC GP, LLC became the general partner of Guadalupe-Saldana Affordable Homes, LP (Guadalupe-Saldana). Because GNDC has 100% of the voting interest in GNDC GP, LLC, and GNDC GP, LLC has a controlling financial interest in Guadalupe-Saldana Affordable Homes, LP (as general partner), the financial statements consolidate the financial statements of the 3 entities. Inter-company balances have been eliminated in the consolidation. GNDC GP, LLC’s sole purpose is to serve as general partner of Guadalupe-Saldana Affordable Homes, LP. Saldana LLP has a minority interest in Guadalupe Saldana Affordable Homes. Guadalupe-Saldana Affordable Homes, LP owns land where GNDC will build approximately 125 homes. The accompanying consolidated financial statements report all of the activity of various funding sources which includes rental and interest income, contributions, forgivable debt, and sales of houses. During 2007, GNDC established La Vista de Guadalupe, LLC with GNDC as the sole member. La Vista de Guadalupe, LLC was the 0.009% general partner of Guadalupe Family Community LP (GFC) until 2023 when GNDC acquired 100% interest of GFC as the Limited Partner. Inter-company balances have been eliminated in the consolidation. The financial statements of GFC have been consolidated with GNDC. In 2015, GNDC established GNDC Saldana GP, LLC (GNDC Saldana GP), with GNDC being the sole member. GNDC Saldana GP and the Jeremiah Program Austin, LLC subsequently formed a partnership, Guadalupe Jeremiah LP (Guadalupe Jeremiah), with GNDC Saldana GP as the general partner, and Jeremiah Program Austin, LLC as a limited partner. As GNDC, through GNDC Saldana GP, has a controlling financial interest in and is the primary beneficiary of Guadalupe Jeremiah, the financial statements of Guadalupe Jeremiah are consolidated with GNDC. Inter-company balances have been eliminated in the consolidation. In 2019, Guadalupe Jeremiah constructed a residential rental facility with 35 units for single parents pursuing education and career opportunities. In 2020, GNDC established GNDC Lopez GP, LLC (De Lopez), with GNDC being the sole member. The purpose of this company is to provide affordable housing to low income individuals and track transactions in connection with La Vista de Lopez, an affordable housing project in Austin. During 2023 construction began on the De Lopez property. Inter-company balances have been eliminated in the consolidation. The financial statements of De Lopez have been consolidated with GNDC. In 2022, GNDC established Escuela Nueva LP (Escuela Nueva), with GNDC being the sole member. The purpose of this company is to provide affordable housing to low income individuals and track transactions in connection with Escuela Nueva, an affordable housing project in Austin. Inter-company balances have been eliminated in the consolidation. The financial statements of Escuela Nueva have been consolidated with GNDC. In 2025, this project was terminated.

Title: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES FINANCIAL STATEMENT PRESENTATION Net assets are classified based on the existence or absence of donor-imposed restrictions. Accordingly, net assets and changes therein are classified and reported as follows: Net Assets Without Donor Restrictions Net assets available for use in general operations and not subject to donor restrictions. Net Assets With Donor Restrictions Net assets subject to donor-imposed restrictions. Some donor restrictions are temporary in nature, such as those that will be met by the passage of time or other events specified by the donor. Other donor-imposed restrictions are perpetual in nature, where the donor stipulates that resources be maintained in perpetuity. Donor-imposed restrictions are released when a restriction expires, that is when the stipulated time has elapsed, when the stipulated purpose for which the resource was restricted has been fulfilled, or both. BASIS OF ACCOUNTING GNDC uses the accrual method of accounting which recognizes revenue when earned and expenses when incurred. RESTRICTED CASH At 31 December 2024 and 2023, GNDC has restricted cash of $864,505 and 263,407, respectively, which is held in escrow by the lender for replacement reserves, working capital, operating deficit, and completion assurance. These funds are required to be held in a separate account. The following table provides a reconciliation of cash and restricted cash reported within the statements of financial position to the sum of the corresponding amounts within the statements of cash flows. 2024 2023 Cash $2,265,126 $3,453,630 Restricted cash held in escrow 864,505 263,407 $3,129,631 $3,717,037 REVENUE Unconditional grants and contributions received are recorded at fair value on the date of the award as with donor restrictions or without donor restrictions depending on the existence and/or nature of any donor-imposed restrictions. FORGIVENESS OF INTEREST GNDC has several forgivable loans with stated interest rates of zero percent. Interest related to these loans is considered forgiven annually if GNDC is in compliance with the terms of the loan agreements. The forgiven interest is calculated using a market rate of 5%. RENTAL OPERATIONS GNDC leases its real estate properties as single family residences, duplexes, and apartment complexes under operating leases that are cancellable with 30 days notice. Generally, these leases have twelve month terms, automatically renewing on a month-to-month basis thereafter. Tenants pay a monthly rate established in lease agreements. FEE FOR SERVICE CONTRACT Revenue under the fee for service contract is earned upon completion of set objectives and deliverables defined in the contract. PROPERTY SALES Revenue from property sales is recognized at a point in time upon completion of the sale when the title of the property transfers to the customer. Payment is due upon completion of the sale. The sales price is established in the purchase agreements. There is typically no financing component because payments are received within one year of the sale. SUBSEQUENT EVENTS Management of GNDC has evaluated subsequent events for disclosure through the date of the Independent Auditor’s Report, the date the consolidated financial statements were available to be issued. ESTIMATES The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. FUNCTIONAL EXPENSE ALLOCATION The consolidated financial statements report certain categories of expenses that are attributed to more than one program or supporting function. Therefore, expenses require allocation on a reasonable basis that is consistently applied. The expenses that are allocated are depreciation, payroll, insurance, utilities, legal, loss on transfer, and other, which are allocated based on personnel time spent on each area as estimated by management. NOTES RECEIVABLE Notes receivable are stated at the principal amount outstanding. Interest income on notes receivable is recognized over the term of the note and is computed using the simple interest method on principal amounts outstanding. INCOME TAXES In accordance with Section 501(c)(3) of the Internal Revenue Code, GNDC is exempt from federal income taxes. Consequently, no provision for Federal income taxes is included in the accompanying consolidated financial statements. Guadalupe-Saldana, Guadalupe Jeremiah, de Lopez, GFC, and Escuela Nueva have elected to be taxed as limited partnerships. Under such elections, federal taxable income or loss and tax credits are passed through to the individual partners. Texas state taxes are imposed at the entity level. Any federal taxes due by GNDC, as the general partner, or any state taxes due by the limited partnerships, are recognized in the financial statements when incurred, as tax expense and tax liability. GNDC’s policy is to record interest and penalties related to income taxes as interest and other expense and federal or state taxes as tax expense. FIXED ASSETS Acquisitions of property and equipment valued at $1,000 or more and a useful life greater than one year are capitalized at cost if purchased, or estimated fair market value on the date of donation, if contributed. Repairs and maintenance costs are expended as incurred. Depreciation is computed using the straight-line method based on the estimated useful life of the asset, which is 5 years for furniture and equipment and 20 years for infrastructure. RENTAL REAL ESTATE Rental real estate consists of land, housing units, and closing costs. Rental real estate is capitalized at cost, which includes the cost of preacquisition, acquisition, development, and construction. Housing units leased are depreciated using the straight-line method based on an estimated useful life of 25 years. Housing units leased and held for sale are restricted for rental and sales to families with low incomes. Housing units held for sale are set to be sold to families with low income in subsequent years. Upon the sale of housing units, the difference between the cost and sale proceeds results in a net gain or loss. De Minimis Rate Used: N Rate Explanation: Elected not to use FINANCIAL STATEMENT PRESENTATION Net assets are classified based on the existence or absence of donor-imposed restrictions. Accordingly, net assets and changes therein are classified and reported as follows: Net Assets Without Donor Restrictions Net assets available for use in general operations and not subject to donor restrictions. Net Assets With Donor Restrictions Net assets subject to donor-imposed restrictions. Some donor restrictions are temporary in nature, such as those that will be met by the passage of time or other events specified by the donor. Other donor-imposed restrictions are perpetual in nature, where the donor stipulates that resources be maintained in perpetuity. Donor-imposed restrictions are released when a restriction expires, that is when the stipulated time has elapsed, when the stipulated purpose for which the resource was restricted has been fulfilled, or both. BASIS OF ACCOUNTING GNDC uses the accrual method of accounting which recognizes revenue when earned and expenses when incurred. RESTRICTED CASH At 31 December 2024 and 2023, GNDC has restricted cash of $864,505 and 263,407, respectively, which is held in escrow by the lender for replacement reserves, working capital, operating deficit, and completion assurance. These funds are required to be held in a separate account. The following table provides a reconciliation of cash and restricted cash reported within the statements of financial position to the sum of the corresponding amounts within the statements of cash flows. 2024 2023 Cash $2,265,126 $3,453,630 Restricted cash held in escrow 864,505 263,407 $3,129,631 $3,717,037 REVENUE Unconditional grants and contributions received are recorded at fair value on the date of the award as with donor restrictions or without donor restrictions depending on the existence and/or nature of any donor-imposed restrictions. FORGIVENESS OF INTEREST GNDC has several forgivable loans with stated interest rates of zero percent. Interest related to these loans is considered forgiven annually if GNDC is in compliance with the terms of the loan agreements. The forgiven interest is calculated using a market rate of 5%. RENTAL OPERATIONS GNDC leases its real estate properties as single family residences, duplexes, and apartment complexes under operating leases that are cancellable with 30 days notice. Generally, these leases have twelve month terms, automatically renewing on a month-to-month basis thereafter. Tenants pay a monthly rate established in lease agreements. FEE FOR SERVICE CONTRACT Revenue under the fee for service contract is earned upon completion of set objectives and deliverables defined in the contract. PROPERTY SALES Revenue from property sales is recognized at a point in time upon completion of the sale when the title of the property transfers to the customer. Payment is due upon completion of the sale. The sales price is established in the purchase agreements. There is typically no financing component because payments are received within one year of the sale. SUBSEQUENT EVENTS Management of GNDC has evaluated subsequent events for disclosure through the date of the Independent Auditor’s Report, the date the consolidated financial statements were available to be issued. ESTIMATES The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. FUNCTIONAL EXPENSE ALLOCATION The consolidated financial statements report certain categories of expenses that are attributed to more than one program or supporting function. Therefore, expenses require allocation on a reasonable basis that is consistently applied. The expenses that are allocated are depreciation, payroll, insurance, utilities, legal, loss on transfer, and other, which are allocated based on personnel time spent on each area as estimated by management. NOTES RECEIVABLE Notes receivable are stated at the principal amount outstanding. Interest income on notes receivable is recognized over the term of the note and is computed using the simple interest method on principal amounts outstanding. INCOME TAXES In accordance with Section 501(c)(3) of the Internal Revenue Code, GNDC is exempt from federal income taxes. Consequently, no provision for Federal income taxes is included in the accompanying consolidated financial statements. Guadalupe-Saldana, Guadalupe Jeremiah, de Lopez, GFC, and Escuela Nueva have elected to be taxed as limited partnerships. Under such elections, federal taxable income or loss and tax credits are passed through to the individual partners. Texas state taxes are imposed at the entity level. Any federal taxes due by GNDC, as the general partner, or any state taxes due by the limited partnerships, are recognized in the financial statements when incurred, as tax expense and tax liability. GNDC’s policy is to record interest and penalties related to income taxes as interest and other expense and federal or state taxes as tax expense. FIXED ASSETS Acquisitions of property and equipment valued at $1,000 or more and a useful life greater than one year are capitalized at cost if purchased, or estimated fair market value on the date of donation, if contributed. Repairs and maintenance costs are expended as incurred. Depreciation is computed using the straight-line method based on the estimated useful life of the asset, which is 5 years for furniture and equipment and 20 years for infrastructure. RENTAL REAL ESTATE Rental real estate consists of land, housing units, and closing costs. Rental real estate is capitalized at cost, which includes the cost of preacquisition, acquisition, development, and construction. Housing units leased are depreciated using the straight-line method based on an estimated useful life of 25 years. Housing units leased and held for sale are restricted for rental and sales to families with low incomes. Housing units held for sale are set to be sold to families with low income in subsequent years. Upon the sale of housing units, the difference between the cost and sale proceeds results in a net gain or loss.

Title: CONTINGENCIES Accounting Policies: NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES FINANCIAL STATEMENT PRESENTATION Net assets are classified based on the existence or absence of donor-imposed restrictions. Accordingly, net assets and changes therein are classified and reported as follows: Net Assets Without Donor Restrictions Net assets available for use in general operations and not subject to donor restrictions. Net Assets With Donor Restrictions Net assets subject to donor-imposed restrictions. Some donor restrictions are temporary in nature, such as those that will be met by the passage of time or other events specified by the donor. Other donor-imposed restrictions are perpetual in nature, where the donor stipulates that resources be maintained in perpetuity. Donor-imposed restrictions are released when a restriction expires, that is when the stipulated time has elapsed, when the stipulated purpose for which the resource was restricted has been fulfilled, or both. BASIS OF ACCOUNTING GNDC uses the accrual method of accounting which recognizes revenue when earned and expenses when incurred. RESTRICTED CASH At 31 December 2024 and 2023, GNDC has restricted cash of $864,505 and 263,407, respectively, which is held in escrow by the lender for replacement reserves, working capital, operating deficit, and completion assurance. These funds are required to be held in a separate account. The following table provides a reconciliation of cash and restricted cash reported within the statements of financial position to the sum of the corresponding amounts within the statements of cash flows. 2024 2023 Cash $2,265,126 $3,453,630 Restricted cash held in escrow 864,505 263,407 $3,129,631 $3,717,037 REVENUE Unconditional grants and contributions received are recorded at fair value on the date of the award as with donor restrictions or without donor restrictions depending on the existence and/or nature of any donor-imposed restrictions. FORGIVENESS OF INTEREST GNDC has several forgivable loans with stated interest rates of zero percent. Interest related to these loans is considered forgiven annually if GNDC is in compliance with the terms of the loan agreements. The forgiven interest is calculated using a market rate of 5%. RENTAL OPERATIONS GNDC leases its real estate properties as single family residences, duplexes, and apartment complexes under operating leases that are cancellable with 30 days notice. Generally, these leases have twelve month terms, automatically renewing on a month-to-month basis thereafter. Tenants pay a monthly rate established in lease agreements. FEE FOR SERVICE CONTRACT Revenue under the fee for service contract is earned upon completion of set objectives and deliverables defined in the contract. PROPERTY SALES Revenue from property sales is recognized at a point in time upon completion of the sale when the title of the property transfers to the customer. Payment is due upon completion of the sale. The sales price is established in the purchase agreements. There is typically no financing component because payments are received within one year of the sale. SUBSEQUENT EVENTS Management of GNDC has evaluated subsequent events for disclosure through the date of the Independent Auditor’s Report, the date the consolidated financial statements were available to be issued. ESTIMATES The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. FUNCTIONAL EXPENSE ALLOCATION The consolidated financial statements report certain categories of expenses that are attributed to more than one program or supporting function. Therefore, expenses require allocation on a reasonable basis that is consistently applied. The expenses that are allocated are depreciation, payroll, insurance, utilities, legal, loss on transfer, and other, which are allocated based on personnel time spent on each area as estimated by management. NOTES RECEIVABLE Notes receivable are stated at the principal amount outstanding. Interest income on notes receivable is recognized over the term of the note and is computed using the simple interest method on principal amounts outstanding. INCOME TAXES In accordance with Section 501(c)(3) of the Internal Revenue Code, GNDC is exempt from federal income taxes. Consequently, no provision for Federal income taxes is included in the accompanying consolidated financial statements. Guadalupe-Saldana, Guadalupe Jeremiah, de Lopez, GFC, and Escuela Nueva have elected to be taxed as limited partnerships. Under such elections, federal taxable income or loss and tax credits are passed through to the individual partners. Texas state taxes are imposed at the entity level. Any federal taxes due by GNDC, as the general partner, or any state taxes due by the limited partnerships, are recognized in the financial statements when incurred, as tax expense and tax liability. GNDC’s policy is to record interest and penalties related to income taxes as interest and other expense and federal or state taxes as tax expense. FIXED ASSETS Acquisitions of property and equipment valued at $1,000 or more and a useful life greater than one year are capitalized at cost if purchased, or estimated fair market value on the date of donation, if contributed. Repairs and maintenance costs are expended as incurred. Depreciation is computed using the straight-line method based on the estimated useful life of the asset, which is 5 years for furniture and equipment and 20 years for infrastructure. RENTAL REAL ESTATE Rental real estate consists of land, housing units, and closing costs. Rental real estate is capitalized at cost, which includes the cost of preacquisition, acquisition, development, and construction. Housing units leased are depreciated using the straight-line method based on an estimated useful life of 25 years. Housing units leased and held for sale are restricted for rental and sales to families with low incomes. Housing units held for sale are set to be sold to families with low income in subsequent years. Upon the sale of housing units, the difference between the cost and sale proceeds results in a net gain or loss. De Minimis Rate Used: N Rate Explanation: Elected not to use GNDC receives forgivable loans and cost reimbursement grants from the City of Austin to assist with implementation of its program. Should GNDC not comply with the terms of the loans and grants or should any costs be determined to be ineligible, GNDC will be responsible for reimbursing the grantor for these amounts. Management believes there will be no such disallowance. As part of a development agreement, GNDC guaranteed to fund operating deficits, if any, of GFC apartments up to $85,000 via an unsecured loan to GFC with interest at 8%. As of 31 December 2024 and 2023, no operating deficits have been incurred. GNDC has a shared interest in the gain at sale for several properties. GNDC will recognize income upon the sale of the property based on the appreciated value at the date of sale. GNDC received land from the City of Austin for affordable housing. Should GNDC not comply with the terms of the deed of trust on the land, GNDC will be responsible for paying the City of Austin $52,818, the value of the land at the time of the agreement. Management believes there will be no such disallowance.

Title: COMMITMENTS Accounting Policies: NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES FINANCIAL STATEMENT PRESENTATION Net assets are classified based on the existence or absence of donor-imposed restrictions. Accordingly, net assets and changes therein are classified and reported as follows: Net Assets Without Donor Restrictions Net assets available for use in general operations and not subject to donor restrictions. Net Assets With Donor Restrictions Net assets subject to donor-imposed restrictions. Some donor restrictions are temporary in nature, such as those that will be met by the passage of time or other events specified by the donor. Other donor-imposed restrictions are perpetual in nature, where the donor stipulates that resources be maintained in perpetuity. Donor-imposed restrictions are released when a restriction expires, that is when the stipulated time has elapsed, when the stipulated purpose for which the resource was restricted has been fulfilled, or both. BASIS OF ACCOUNTING GNDC uses the accrual method of accounting which recognizes revenue when earned and expenses when incurred. RESTRICTED CASH At 31 December 2024 and 2023, GNDC has restricted cash of $864,505 and 263,407, respectively, which is held in escrow by the lender for replacement reserves, working capital, operating deficit, and completion assurance. These funds are required to be held in a separate account. The following table provides a reconciliation of cash and restricted cash reported within the statements of financial position to the sum of the corresponding amounts within the statements of cash flows. 2024 2023 Cash $2,265,126 $3,453,630 Restricted cash held in escrow 864,505 263,407 $3,129,631 $3,717,037 REVENUE Unconditional grants and contributions received are recorded at fair value on the date of the award as with donor restrictions or without donor restrictions depending on the existence and/or nature of any donor-imposed restrictions. FORGIVENESS OF INTEREST GNDC has several forgivable loans with stated interest rates of zero percent. Interest related to these loans is considered forgiven annually if GNDC is in compliance with the terms of the loan agreements. The forgiven interest is calculated using a market rate of 5%. RENTAL OPERATIONS GNDC leases its real estate properties as single family residences, duplexes, and apartment complexes under operating leases that are cancellable with 30 days notice. Generally, these leases have twelve month terms, automatically renewing on a month-to-month basis thereafter. Tenants pay a monthly rate established in lease agreements. FEE FOR SERVICE CONTRACT Revenue under the fee for service contract is earned upon completion of set objectives and deliverables defined in the contract. PROPERTY SALES Revenue from property sales is recognized at a point in time upon completion of the sale when the title of the property transfers to the customer. Payment is due upon completion of the sale. The sales price is established in the purchase agreements. There is typically no financing component because payments are received within one year of the sale. SUBSEQUENT EVENTS Management of GNDC has evaluated subsequent events for disclosure through the date of the Independent Auditor’s Report, the date the consolidated financial statements were available to be issued. ESTIMATES The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. FUNCTIONAL EXPENSE ALLOCATION The consolidated financial statements report certain categories of expenses that are attributed to more than one program or supporting function. Therefore, expenses require allocation on a reasonable basis that is consistently applied. The expenses that are allocated are depreciation, payroll, insurance, utilities, legal, loss on transfer, and other, which are allocated based on personnel time spent on each area as estimated by management. NOTES RECEIVABLE Notes receivable are stated at the principal amount outstanding. Interest income on notes receivable is recognized over the term of the note and is computed using the simple interest method on principal amounts outstanding. INCOME TAXES In accordance with Section 501(c)(3) of the Internal Revenue Code, GNDC is exempt from federal income taxes. Consequently, no provision for Federal income taxes is included in the accompanying consolidated financial statements. Guadalupe-Saldana, Guadalupe Jeremiah, de Lopez, GFC, and Escuela Nueva have elected to be taxed as limited partnerships. Under such elections, federal taxable income or loss and tax credits are passed through to the individual partners. Texas state taxes are imposed at the entity level. Any federal taxes due by GNDC, as the general partner, or any state taxes due by the limited partnerships, are recognized in the financial statements when incurred, as tax expense and tax liability. GNDC’s policy is to record interest and penalties related to income taxes as interest and other expense and federal or state taxes as tax expense. FIXED ASSETS Acquisitions of property and equipment valued at $1,000 or more and a useful life greater than one year are capitalized at cost if purchased, or estimated fair market value on the date of donation, if contributed. Repairs and maintenance costs are expended as incurred. Depreciation is computed using the straight-line method based on the estimated useful life of the asset, which is 5 years for furniture and equipment and 20 years for infrastructure. RENTAL REAL ESTATE Rental real estate consists of land, housing units, and closing costs. Rental real estate is capitalized at cost, which includes the cost of preacquisition, acquisition, development, and construction. Housing units leased are depreciated using the straight-line method based on an estimated useful life of 25 years. Housing units leased and held for sale are restricted for rental and sales to families with low incomes. Housing units held for sale are set to be sold to families with low income in subsequent years. Upon the sale of housing units, the difference between the cost and sale proceeds results in a net gain or loss. De Minimis Rate Used: N Rate Explanation: Elected not to use Under the terms of various agreements with funding agencies, GNDC is required to provide certain services including, but not limited to, using certain properties for low income housing and maintaining certain levels of insurance.

Title: CONCENTRATIONS Accounting Policies: NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES FINANCIAL STATEMENT PRESENTATION Net assets are classified based on the existence or absence of donor-imposed restrictions. Accordingly, net assets and changes therein are classified and reported as follows: Net Assets Without Donor Restrictions Net assets available for use in general operations and not subject to donor restrictions. Net Assets With Donor Restrictions Net assets subject to donor-imposed restrictions. Some donor restrictions are temporary in nature, such as those that will be met by the passage of time or other events specified by the donor. Other donor-imposed restrictions are perpetual in nature, where the donor stipulates that resources be maintained in perpetuity. Donor-imposed restrictions are released when a restriction expires, that is when the stipulated time has elapsed, when the stipulated purpose for which the resource was restricted has been fulfilled, or both. BASIS OF ACCOUNTING GNDC uses the accrual method of accounting which recognizes revenue when earned and expenses when incurred. RESTRICTED CASH At 31 December 2024 and 2023, GNDC has restricted cash of $864,505 and 263,407, respectively, which is held in escrow by the lender for replacement reserves, working capital, operating deficit, and completion assurance. These funds are required to be held in a separate account. The following table provides a reconciliation of cash and restricted cash reported within the statements of financial position to the sum of the corresponding amounts within the statements of cash flows. 2024 2023 Cash $2,265,126 $3,453,630 Restricted cash held in escrow 864,505 263,407 $3,129,631 $3,717,037 REVENUE Unconditional grants and contributions received are recorded at fair value on the date of the award as with donor restrictions or without donor restrictions depending on the existence and/or nature of any donor-imposed restrictions. FORGIVENESS OF INTEREST GNDC has several forgivable loans with stated interest rates of zero percent. Interest related to these loans is considered forgiven annually if GNDC is in compliance with the terms of the loan agreements. The forgiven interest is calculated using a market rate of 5%. RENTAL OPERATIONS GNDC leases its real estate properties as single family residences, duplexes, and apartment complexes under operating leases that are cancellable with 30 days notice. Generally, these leases have twelve month terms, automatically renewing on a month-to-month basis thereafter. Tenants pay a monthly rate established in lease agreements. FEE FOR SERVICE CONTRACT Revenue under the fee for service contract is earned upon completion of set objectives and deliverables defined in the contract. PROPERTY SALES Revenue from property sales is recognized at a point in time upon completion of the sale when the title of the property transfers to the customer. Payment is due upon completion of the sale. The sales price is established in the purchase agreements. There is typically no financing component because payments are received within one year of the sale. SUBSEQUENT EVENTS Management of GNDC has evaluated subsequent events for disclosure through the date of the Independent Auditor’s Report, the date the consolidated financial statements were available to be issued. ESTIMATES The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. FUNCTIONAL EXPENSE ALLOCATION The consolidated financial statements report certain categories of expenses that are attributed to more than one program or supporting function. Therefore, expenses require allocation on a reasonable basis that is consistently applied. The expenses that are allocated are depreciation, payroll, insurance, utilities, legal, loss on transfer, and other, which are allocated based on personnel time spent on each area as estimated by management. NOTES RECEIVABLE Notes receivable are stated at the principal amount outstanding. Interest income on notes receivable is recognized over the term of the note and is computed using the simple interest method on principal amounts outstanding. INCOME TAXES In accordance with Section 501(c)(3) of the Internal Revenue Code, GNDC is exempt from federal income taxes. Consequently, no provision for Federal income taxes is included in the accompanying consolidated financial statements. Guadalupe-Saldana, Guadalupe Jeremiah, de Lopez, GFC, and Escuela Nueva have elected to be taxed as limited partnerships. Under such elections, federal taxable income or loss and tax credits are passed through to the individual partners. Texas state taxes are imposed at the entity level. Any federal taxes due by GNDC, as the general partner, or any state taxes due by the limited partnerships, are recognized in the financial statements when incurred, as tax expense and tax liability. GNDC’s policy is to record interest and penalties related to income taxes as interest and other expense and federal or state taxes as tax expense. FIXED ASSETS Acquisitions of property and equipment valued at $1,000 or more and a useful life greater than one year are capitalized at cost if purchased, or estimated fair market value on the date of donation, if contributed. Repairs and maintenance costs are expended as incurred. Depreciation is computed using the straight-line method based on the estimated useful life of the asset, which is 5 years for furniture and equipment and 20 years for infrastructure. RENTAL REAL ESTATE Rental real estate consists of land, housing units, and closing costs. Rental real estate is capitalized at cost, which includes the cost of preacquisition, acquisition, development, and construction. Housing units leased are depreciated using the straight-line method based on an estimated useful life of 25 years. Housing units leased and held for sale are restricted for rental and sales to families with low incomes. Housing units held for sale are set to be sold to families with low income in subsequent years. Upon the sale of housing units, the difference between the cost and sale proceeds results in a net gain or loss. De Minimis Rate Used: N Rate Explanation: Elected not to use 67% and 86% of notes payable are due to one lender as of 31 December 2024 and 2023, respectively. In 2024, 24% of total revenue and 79% of grants receivable are from one donor. At 31 December 2024 and 2023, GNDC had cash balances in excess of FDIC insurance amounting to $1,871,887 and $2,909,391 respectively. GNDC has not experienced any losses due to this credit risk.

Title: MINORITY INTEREST LIABILITIES Accounting Policies: NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES FINANCIAL STATEMENT PRESENTATION Net assets are classified based on the existence or absence of donor-imposed restrictions. Accordingly, net assets and changes therein are classified and reported as follows: Net Assets Without Donor Restrictions Net assets available for use in general operations and not subject to donor restrictions. Net Assets With Donor Restrictions Net assets subject to donor-imposed restrictions. Some donor restrictions are temporary in nature, such as those that will be met by the passage of time or other events specified by the donor. Other donor-imposed restrictions are perpetual in nature, where the donor stipulates that resources be maintained in perpetuity. Donor-imposed restrictions are released when a restriction expires, that is when the stipulated time has elapsed, when the stipulated purpose for which the resource was restricted has been fulfilled, or both. BASIS OF ACCOUNTING GNDC uses the accrual method of accounting which recognizes revenue when earned and expenses when incurred. RESTRICTED CASH At 31 December 2024 and 2023, GNDC has restricted cash of $864,505 and 263,407, respectively, which is held in escrow by the lender for replacement reserves, working capital, operating deficit, and completion assurance. These funds are required to be held in a separate account. The following table provides a reconciliation of cash and restricted cash reported within the statements of financial position to the sum of the corresponding amounts within the statements of cash flows. 2024 2023 Cash $2,265,126 $3,453,630 Restricted cash held in escrow 864,505 263,407 $3,129,631 $3,717,037 REVENUE Unconditional grants and contributions received are recorded at fair value on the date of the award as with donor restrictions or without donor restrictions depending on the existence and/or nature of any donor-imposed restrictions. FORGIVENESS OF INTEREST GNDC has several forgivable loans with stated interest rates of zero percent. Interest related to these loans is considered forgiven annually if GNDC is in compliance with the terms of the loan agreements. The forgiven interest is calculated using a market rate of 5%. RENTAL OPERATIONS GNDC leases its real estate properties as single family residences, duplexes, and apartment complexes under operating leases that are cancellable with 30 days notice. Generally, these leases have twelve month terms, automatically renewing on a month-to-month basis thereafter. Tenants pay a monthly rate established in lease agreements. FEE FOR SERVICE CONTRACT Revenue under the fee for service contract is earned upon completion of set objectives and deliverables defined in the contract. PROPERTY SALES Revenue from property sales is recognized at a point in time upon completion of the sale when the title of the property transfers to the customer. Payment is due upon completion of the sale. The sales price is established in the purchase agreements. There is typically no financing component because payments are received within one year of the sale. SUBSEQUENT EVENTS Management of GNDC has evaluated subsequent events for disclosure through the date of the Independent Auditor’s Report, the date the consolidated financial statements were available to be issued. ESTIMATES The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. FUNCTIONAL EXPENSE ALLOCATION The consolidated financial statements report certain categories of expenses that are attributed to more than one program or supporting function. Therefore, expenses require allocation on a reasonable basis that is consistently applied. The expenses that are allocated are depreciation, payroll, insurance, utilities, legal, loss on transfer, and other, which are allocated based on personnel time spent on each area as estimated by management. NOTES RECEIVABLE Notes receivable are stated at the principal amount outstanding. Interest income on notes receivable is recognized over the term of the note and is computed using the simple interest method on principal amounts outstanding. INCOME TAXES In accordance with Section 501(c)(3) of the Internal Revenue Code, GNDC is exempt from federal income taxes. Consequently, no provision for Federal income taxes is included in the accompanying consolidated financial statements. Guadalupe-Saldana, Guadalupe Jeremiah, de Lopez, GFC, and Escuela Nueva have elected to be taxed as limited partnerships. Under such elections, federal taxable income or loss and tax credits are passed through to the individual partners. Texas state taxes are imposed at the entity level. Any federal taxes due by GNDC, as the general partner, or any state taxes due by the limited partnerships, are recognized in the financial statements when incurred, as tax expense and tax liability. GNDC’s policy is to record interest and penalties related to income taxes as interest and other expense and federal or state taxes as tax expense. FIXED ASSETS Acquisitions of property and equipment valued at $1,000 or more and a useful life greater than one year are capitalized at cost if purchased, or estimated fair market value on the date of donation, if contributed. Repairs and maintenance costs are expended as incurred. Depreciation is computed using the straight-line method based on the estimated useful life of the asset, which is 5 years for furniture and equipment and 20 years for infrastructure. RENTAL REAL ESTATE Rental real estate consists of land, housing units, and closing costs. Rental real estate is capitalized at cost, which includes the cost of preacquisition, acquisition, development, and construction. Housing units leased are depreciated using the straight-line method based on an estimated useful life of 25 years. Housing units leased and held for sale are restricted for rental and sales to families with low incomes. Housing units held for sale are set to be sold to families with low income in subsequent years. Upon the sale of housing units, the difference between the cost and sale proceeds results in a net gain or loss. De Minimis Rate Used: N Rate Explanation: Elected not to use See the Notes to the SEFA for chart/table

Title: FIXED ASSETS Accounting Policies: NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES FINANCIAL STATEMENT PRESENTATION Net assets are classified based on the existence or absence of donor-imposed restrictions. Accordingly, net assets and changes therein are classified and reported as follows: Net Assets Without Donor Restrictions Net assets available for use in general operations and not subject to donor restrictions. Net Assets With Donor Restrictions Net assets subject to donor-imposed restrictions. Some donor restrictions are temporary in nature, such as those that will be met by the passage of time or other events specified by the donor. Other donor-imposed restrictions are perpetual in nature, where the donor stipulates that resources be maintained in perpetuity. Donor-imposed restrictions are released when a restriction expires, that is when the stipulated time has elapsed, when the stipulated purpose for which the resource was restricted has been fulfilled, or both. BASIS OF ACCOUNTING GNDC uses the accrual method of accounting which recognizes revenue when earned and expenses when incurred. RESTRICTED CASH At 31 December 2024 and 2023, GNDC has restricted cash of $864,505 and 263,407, respectively, which is held in escrow by the lender for replacement reserves, working capital, operating deficit, and completion assurance. These funds are required to be held in a separate account. The following table provides a reconciliation of cash and restricted cash reported within the statements of financial position to the sum of the corresponding amounts within the statements of cash flows. 2024 2023 Cash $2,265,126 $3,453,630 Restricted cash held in escrow 864,505 263,407 $3,129,631 $3,717,037 REVENUE Unconditional grants and contributions received are recorded at fair value on the date of the award as with donor restrictions or without donor restrictions depending on the existence and/or nature of any donor-imposed restrictions. FORGIVENESS OF INTEREST GNDC has several forgivable loans with stated interest rates of zero percent. Interest related to these loans is considered forgiven annually if GNDC is in compliance with the terms of the loan agreements. The forgiven interest is calculated using a market rate of 5%. RENTAL OPERATIONS GNDC leases its real estate properties as single family residences, duplexes, and apartment complexes under operating leases that are cancellable with 30 days notice. Generally, these leases have twelve month terms, automatically renewing on a month-to-month basis thereafter. Tenants pay a monthly rate established in lease agreements. FEE FOR SERVICE CONTRACT Revenue under the fee for service contract is earned upon completion of set objectives and deliverables defined in the contract. PROPERTY SALES Revenue from property sales is recognized at a point in time upon completion of the sale when the title of the property transfers to the customer. Payment is due upon completion of the sale. The sales price is established in the purchase agreements. There is typically no financing component because payments are received within one year of the sale. SUBSEQUENT EVENTS Management of GNDC has evaluated subsequent events for disclosure through the date of the Independent Auditor’s Report, the date the consolidated financial statements were available to be issued. ESTIMATES The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. FUNCTIONAL EXPENSE ALLOCATION The consolidated financial statements report certain categories of expenses that are attributed to more than one program or supporting function. Therefore, expenses require allocation on a reasonable basis that is consistently applied. The expenses that are allocated are depreciation, payroll, insurance, utilities, legal, loss on transfer, and other, which are allocated based on personnel time spent on each area as estimated by management. NOTES RECEIVABLE Notes receivable are stated at the principal amount outstanding. Interest income on notes receivable is recognized over the term of the note and is computed using the simple interest method on principal amounts outstanding. INCOME TAXES In accordance with Section 501(c)(3) of the Internal Revenue Code, GNDC is exempt from federal income taxes. Consequently, no provision for Federal income taxes is included in the accompanying consolidated financial statements. Guadalupe-Saldana, Guadalupe Jeremiah, de Lopez, GFC, and Escuela Nueva have elected to be taxed as limited partnerships. Under such elections, federal taxable income or loss and tax credits are passed through to the individual partners. Texas state taxes are imposed at the entity level. Any federal taxes due by GNDC, as the general partner, or any state taxes due by the limited partnerships, are recognized in the financial statements when incurred, as tax expense and tax liability. GNDC’s policy is to record interest and penalties related to income taxes as interest and other expense and federal or state taxes as tax expense. FIXED ASSETS Acquisitions of property and equipment valued at $1,000 or more and a useful life greater than one year are capitalized at cost if purchased, or estimated fair market value on the date of donation, if contributed. Repairs and maintenance costs are expended as incurred. Depreciation is computed using the straight-line method based on the estimated useful life of the asset, which is 5 years for furniture and equipment and 20 years for infrastructure. RENTAL REAL ESTATE Rental real estate consists of land, housing units, and closing costs. Rental real estate is capitalized at cost, which includes the cost of preacquisition, acquisition, development, and construction. Housing units leased are depreciated using the straight-line method based on an estimated useful life of 25 years. Housing units leased and held for sale are restricted for rental and sales to families with low incomes. Housing units held for sale are set to be sold to families with low income in subsequent years. Upon the sale of housing units, the difference between the cost and sale proceeds results in a net gain or loss. De Minimis Rate Used: N Rate Explanation: Elected not to use See the Notes to the SEFA for chart/table

Title: RENTAL REAL ESTATE Accounting Policies: NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES FINANCIAL STATEMENT PRESENTATION Net assets are classified based on the existence or absence of donor-imposed restrictions. Accordingly, net assets and changes therein are classified and reported as follows: Net Assets Without Donor Restrictions Net assets available for use in general operations and not subject to donor restrictions. Net Assets With Donor Restrictions Net assets subject to donor-imposed restrictions. Some donor restrictions are temporary in nature, such as those that will be met by the passage of time or other events specified by the donor. Other donor-imposed restrictions are perpetual in nature, where the donor stipulates that resources be maintained in perpetuity. Donor-imposed restrictions are released when a restriction expires, that is when the stipulated time has elapsed, when the stipulated purpose for which the resource was restricted has been fulfilled, or both. BASIS OF ACCOUNTING GNDC uses the accrual method of accounting which recognizes revenue when earned and expenses when incurred. RESTRICTED CASH At 31 December 2024 and 2023, GNDC has restricted cash of $864,505 and 263,407, respectively, which is held in escrow by the lender for replacement reserves, working capital, operating deficit, and completion assurance. These funds are required to be held in a separate account. The following table provides a reconciliation of cash and restricted cash reported within the statements of financial position to the sum of the corresponding amounts within the statements of cash flows. 2024 2023 Cash $2,265,126 $3,453,630 Restricted cash held in escrow 864,505 263,407 $3,129,631 $3,717,037 REVENUE Unconditional grants and contributions received are recorded at fair value on the date of the award as with donor restrictions or without donor restrictions depending on the existence and/or nature of any donor-imposed restrictions. FORGIVENESS OF INTEREST GNDC has several forgivable loans with stated interest rates of zero percent. Interest related to these loans is considered forgiven annually if GNDC is in compliance with the terms of the loan agreements. The forgiven interest is calculated using a market rate of 5%. RENTAL OPERATIONS GNDC leases its real estate properties as single family residences, duplexes, and apartment complexes under operating leases that are cancellable with 30 days notice. Generally, these leases have twelve month terms, automatically renewing on a month-to-month basis thereafter. Tenants pay a monthly rate established in lease agreements. FEE FOR SERVICE CONTRACT Revenue under the fee for service contract is earned upon completion of set objectives and deliverables defined in the contract. PROPERTY SALES Revenue from property sales is recognized at a point in time upon completion of the sale when the title of the property transfers to the customer. Payment is due upon completion of the sale. The sales price is established in the purchase agreements. There is typically no financing component because payments are received within one year of the sale. SUBSEQUENT EVENTS Management of GNDC has evaluated subsequent events for disclosure through the date of the Independent Auditor’s Report, the date the consolidated financial statements were available to be issued. ESTIMATES The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. FUNCTIONAL EXPENSE ALLOCATION The consolidated financial statements report certain categories of expenses that are attributed to more than one program or supporting function. Therefore, expenses require allocation on a reasonable basis that is consistently applied. The expenses that are allocated are depreciation, payroll, insurance, utilities, legal, loss on transfer, and other, which are allocated based on personnel time spent on each area as estimated by management. NOTES RECEIVABLE Notes receivable are stated at the principal amount outstanding. Interest income on notes receivable is recognized over the term of the note and is computed using the simple interest method on principal amounts outstanding. INCOME TAXES In accordance with Section 501(c)(3) of the Internal Revenue Code, GNDC is exempt from federal income taxes. Consequently, no provision for Federal income taxes is included in the accompanying consolidated financial statements. Guadalupe-Saldana, Guadalupe Jeremiah, de Lopez, GFC, and Escuela Nueva have elected to be taxed as limited partnerships. Under such elections, federal taxable income or loss and tax credits are passed through to the individual partners. Texas state taxes are imposed at the entity level. Any federal taxes due by GNDC, as the general partner, or any state taxes due by the limited partnerships, are recognized in the financial statements when incurred, as tax expense and tax liability. GNDC’s policy is to record interest and penalties related to income taxes as interest and other expense and federal or state taxes as tax expense. FIXED ASSETS Acquisitions of property and equipment valued at $1,000 or more and a useful life greater than one year are capitalized at cost if purchased, or estimated fair market value on the date of donation, if contributed. Repairs and maintenance costs are expended as incurred. Depreciation is computed using the straight-line method based on the estimated useful life of the asset, which is 5 years for furniture and equipment and 20 years for infrastructure. RENTAL REAL ESTATE Rental real estate consists of land, housing units, and closing costs. Rental real estate is capitalized at cost, which includes the cost of preacquisition, acquisition, development, and construction. Housing units leased are depreciated using the straight-line method based on an estimated useful life of 25 years. Housing units leased and held for sale are restricted for rental and sales to families with low incomes. Housing units held for sale are set to be sold to families with low income in subsequent years. Upon the sale of housing units, the difference between the cost and sale proceeds results in a net gain or loss. De Minimis Rate Used: N Rate Explanation: Elected not to use See the Notes to the SEFA for chart/table

Title: CONSTRUCTION CONTRACT COMMITMENTS Accounting Policies: NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES FINANCIAL STATEMENT PRESENTATION Net assets are classified based on the existence or absence of donor-imposed restrictions. Accordingly, net assets and changes therein are classified and reported as follows: Net Assets Without Donor Restrictions Net assets available for use in general operations and not subject to donor restrictions. Net Assets With Donor Restrictions Net assets subject to donor-imposed restrictions. Some donor restrictions are temporary in nature, such as those that will be met by the passage of time or other events specified by the donor. Other donor-imposed restrictions are perpetual in nature, where the donor stipulates that resources be maintained in perpetuity. Donor-imposed restrictions are released when a restriction expires, that is when the stipulated time has elapsed, when the stipulated purpose for which the resource was restricted has been fulfilled, or both. BASIS OF ACCOUNTING GNDC uses the accrual method of accounting which recognizes revenue when earned and expenses when incurred. RESTRICTED CASH At 31 December 2024 and 2023, GNDC has restricted cash of $864,505 and 263,407, respectively, which is held in escrow by the lender for replacement reserves, working capital, operating deficit, and completion assurance. These funds are required to be held in a separate account. The following table provides a reconciliation of cash and restricted cash reported within the statements of financial position to the sum of the corresponding amounts within the statements of cash flows. 2024 2023 Cash $2,265,126 $3,453,630 Restricted cash held in escrow 864,505 263,407 $3,129,631 $3,717,037 REVENUE Unconditional grants and contributions received are recorded at fair value on the date of the award as with donor restrictions or without donor restrictions depending on the existence and/or nature of any donor-imposed restrictions. FORGIVENESS OF INTEREST GNDC has several forgivable loans with stated interest rates of zero percent. Interest related to these loans is considered forgiven annually if GNDC is in compliance with the terms of the loan agreements. The forgiven interest is calculated using a market rate of 5%. RENTAL OPERATIONS GNDC leases its real estate properties as single family residences, duplexes, and apartment complexes under operating leases that are cancellable with 30 days notice. Generally, these leases have twelve month terms, automatically renewing on a month-to-month basis thereafter. Tenants pay a monthly rate established in lease agreements. FEE FOR SERVICE CONTRACT Revenue under the fee for service contract is earned upon completion of set objectives and deliverables defined in the contract. PROPERTY SALES Revenue from property sales is recognized at a point in time upon completion of the sale when the title of the property transfers to the customer. Payment is due upon completion of the sale. The sales price is established in the purchase agreements. There is typically no financing component because payments are received within one year of the sale. SUBSEQUENT EVENTS Management of GNDC has evaluated subsequent events for disclosure through the date of the Independent Auditor’s Report, the date the consolidated financial statements were available to be issued. ESTIMATES The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. FUNCTIONAL EXPENSE ALLOCATION The consolidated financial statements report certain categories of expenses that are attributed to more than one program or supporting function. Therefore, expenses require allocation on a reasonable basis that is consistently applied. The expenses that are allocated are depreciation, payroll, insurance, utilities, legal, loss on transfer, and other, which are allocated based on personnel time spent on each area as estimated by management. NOTES RECEIVABLE Notes receivable are stated at the principal amount outstanding. Interest income on notes receivable is recognized over the term of the note and is computed using the simple interest method on principal amounts outstanding. INCOME TAXES In accordance with Section 501(c)(3) of the Internal Revenue Code, GNDC is exempt from federal income taxes. Consequently, no provision for Federal income taxes is included in the accompanying consolidated financial statements. Guadalupe-Saldana, Guadalupe Jeremiah, de Lopez, GFC, and Escuela Nueva have elected to be taxed as limited partnerships. Under such elections, federal taxable income or loss and tax credits are passed through to the individual partners. Texas state taxes are imposed at the entity level. Any federal taxes due by GNDC, as the general partner, or any state taxes due by the limited partnerships, are recognized in the financial statements when incurred, as tax expense and tax liability. GNDC’s policy is to record interest and penalties related to income taxes as interest and other expense and federal or state taxes as tax expense. FIXED ASSETS Acquisitions of property and equipment valued at $1,000 or more and a useful life greater than one year are capitalized at cost if purchased, or estimated fair market value on the date of donation, if contributed. Repairs and maintenance costs are expended as incurred. Depreciation is computed using the straight-line method based on the estimated useful life of the asset, which is 5 years for furniture and equipment and 20 years for infrastructure. RENTAL REAL ESTATE Rental real estate consists of land, housing units, and closing costs. Rental real estate is capitalized at cost, which includes the cost of preacquisition, acquisition, development, and construction. Housing units leased are depreciated using the straight-line method based on an estimated useful life of 25 years. Housing units leased and held for sale are restricted for rental and sales to families with low incomes. Housing units held for sale are set to be sold to families with low income in subsequent years. Upon the sale of housing units, the difference between the cost and sale proceeds results in a net gain or loss. De Minimis Rate Used: N Rate Explanation: Elected not to use See the Notes to the SEFA for chart/table

Title: FUNCTIONAL EXPENSES Accounting Policies: NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES FINANCIAL STATEMENT PRESENTATION Net assets are classified based on the existence or absence of donor-imposed restrictions. Accordingly, net assets and changes therein are classified and reported as follows: Net Assets Without Donor Restrictions Net assets available for use in general operations and not subject to donor restrictions. Net Assets With Donor Restrictions Net assets subject to donor-imposed restrictions. Some donor restrictions are temporary in nature, such as those that will be met by the passage of time or other events specified by the donor. Other donor-imposed restrictions are perpetual in nature, where the donor stipulates that resources be maintained in perpetuity. Donor-imposed restrictions are released when a restriction expires, that is when the stipulated time has elapsed, when the stipulated purpose for which the resource was restricted has been fulfilled, or both. BASIS OF ACCOUNTING GNDC uses the accrual method of accounting which recognizes revenue when earned and expenses when incurred. RESTRICTED CASH At 31 December 2024 and 2023, GNDC has restricted cash of $864,505 and 263,407, respectively, which is held in escrow by the lender for replacement reserves, working capital, operating deficit, and completion assurance. These funds are required to be held in a separate account. The following table provides a reconciliation of cash and restricted cash reported within the statements of financial position to the sum of the corresponding amounts within the statements of cash flows. 2024 2023 Cash $2,265,126 $3,453,630 Restricted cash held in escrow 864,505 263,407 $3,129,631 $3,717,037 REVENUE Unconditional grants and contributions received are recorded at fair value on the date of the award as with donor restrictions or without donor restrictions depending on the existence and/or nature of any donor-imposed restrictions. FORGIVENESS OF INTEREST GNDC has several forgivable loans with stated interest rates of zero percent. Interest related to these loans is considered forgiven annually if GNDC is in compliance with the terms of the loan agreements. The forgiven interest is calculated using a market rate of 5%. RENTAL OPERATIONS GNDC leases its real estate properties as single family residences, duplexes, and apartment complexes under operating leases that are cancellable with 30 days notice. Generally, these leases have twelve month terms, automatically renewing on a month-to-month basis thereafter. Tenants pay a monthly rate established in lease agreements. FEE FOR SERVICE CONTRACT Revenue under the fee for service contract is earned upon completion of set objectives and deliverables defined in the contract. PROPERTY SALES Revenue from property sales is recognized at a point in time upon completion of the sale when the title of the property transfers to the customer. Payment is due upon completion of the sale. The sales price is established in the purchase agreements. There is typically no financing component because payments are received within one year of the sale. SUBSEQUENT EVENTS Management of GNDC has evaluated subsequent events for disclosure through the date of the Independent Auditor’s Report, the date the consolidated financial statements were available to be issued. ESTIMATES The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. FUNCTIONAL EXPENSE ALLOCATION The consolidated financial statements report certain categories of expenses that are attributed to more than one program or supporting function. Therefore, expenses require allocation on a reasonable basis that is consistently applied. The expenses that are allocated are depreciation, payroll, insurance, utilities, legal, loss on transfer, and other, which are allocated based on personnel time spent on each area as estimated by management. NOTES RECEIVABLE Notes receivable are stated at the principal amount outstanding. Interest income on notes receivable is recognized over the term of the note and is computed using the simple interest method on principal amounts outstanding. INCOME TAXES In accordance with Section 501(c)(3) of the Internal Revenue Code, GNDC is exempt from federal income taxes. Consequently, no provision for Federal income taxes is included in the accompanying consolidated financial statements. Guadalupe-Saldana, Guadalupe Jeremiah, de Lopez, GFC, and Escuela Nueva have elected to be taxed as limited partnerships. Under such elections, federal taxable income or loss and tax credits are passed through to the individual partners. Texas state taxes are imposed at the entity level. Any federal taxes due by GNDC, as the general partner, or any state taxes due by the limited partnerships, are recognized in the financial statements when incurred, as tax expense and tax liability. GNDC’s policy is to record interest and penalties related to income taxes as interest and other expense and federal or state taxes as tax expense. FIXED ASSETS Acquisitions of property and equipment valued at $1,000 or more and a useful life greater than one year are capitalized at cost if purchased, or estimated fair market value on the date of donation, if contributed. Repairs and maintenance costs are expended as incurred. Depreciation is computed using the straight-line method based on the estimated useful life of the asset, which is 5 years for furniture and equipment and 20 years for infrastructure. RENTAL REAL ESTATE Rental real estate consists of land, housing units, and closing costs. Rental real estate is capitalized at cost, which includes the cost of preacquisition, acquisition, development, and construction. Housing units leased are depreciated using the straight-line method based on an estimated useful life of 25 years. Housing units leased and held for sale are restricted for rental and sales to families with low incomes. Housing units held for sale are set to be sold to families with low income in subsequent years. Upon the sale of housing units, the difference between the cost and sale proceeds results in a net gain or loss. De Minimis Rate Used: N Rate Explanation: Elected not to use See the Notes to the SEFA for chart/table

Title: REVENUE FROM CONTRACTS WITH CUSTOMERS Accounting Policies: NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES FINANCIAL STATEMENT PRESENTATION Net assets are classified based on the existence or absence of donor-imposed restrictions. Accordingly, net assets and changes therein are classified and reported as follows: Net Assets Without Donor Restrictions Net assets available for use in general operations and not subject to donor restrictions. Net Assets With Donor Restrictions Net assets subject to donor-imposed restrictions. Some donor restrictions are temporary in nature, such as those that will be met by the passage of time or other events specified by the donor. Other donor-imposed restrictions are perpetual in nature, where the donor stipulates that resources be maintained in perpetuity. Donor-imposed restrictions are released when a restriction expires, that is when the stipulated time has elapsed, when the stipulated purpose for which the resource was restricted has been fulfilled, or both. BASIS OF ACCOUNTING GNDC uses the accrual method of accounting which recognizes revenue when earned and expenses when incurred. RESTRICTED CASH At 31 December 2024 and 2023, GNDC has restricted cash of $864,505 and 263,407, respectively, which is held in escrow by the lender for replacement reserves, working capital, operating deficit, and completion assurance. These funds are required to be held in a separate account. The following table provides a reconciliation of cash and restricted cash reported within the statements of financial position to the sum of the corresponding amounts within the statements of cash flows. 2024 2023 Cash $2,265,126 $3,453,630 Restricted cash held in escrow 864,505 263,407 $3,129,631 $3,717,037 REVENUE Unconditional grants and contributions received are recorded at fair value on the date of the award as with donor restrictions or without donor restrictions depending on the existence and/or nature of any donor-imposed restrictions. FORGIVENESS OF INTEREST GNDC has several forgivable loans with stated interest rates of zero percent. Interest related to these loans is considered forgiven annually if GNDC is in compliance with the terms of the loan agreements. The forgiven interest is calculated using a market rate of 5%. RENTAL OPERATIONS GNDC leases its real estate properties as single family residences, duplexes, and apartment complexes under operating leases that are cancellable with 30 days notice. Generally, these leases have twelve month terms, automatically renewing on a month-to-month basis thereafter. Tenants pay a monthly rate established in lease agreements. FEE FOR SERVICE CONTRACT Revenue under the fee for service contract is earned upon completion of set objectives and deliverables defined in the contract. PROPERTY SALES Revenue from property sales is recognized at a point in time upon completion of the sale when the title of the property transfers to the customer. Payment is due upon completion of the sale. The sales price is established in the purchase agreements. There is typically no financing component because payments are received within one year of the sale. SUBSEQUENT EVENTS Management of GNDC has evaluated subsequent events for disclosure through the date of the Independent Auditor’s Report, the date the consolidated financial statements were available to be issued. ESTIMATES The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. FUNCTIONAL EXPENSE ALLOCATION The consolidated financial statements report certain categories of expenses that are attributed to more than one program or supporting function. Therefore, expenses require allocation on a reasonable basis that is consistently applied. The expenses that are allocated are depreciation, payroll, insurance, utilities, legal, loss on transfer, and other, which are allocated based on personnel time spent on each area as estimated by management. NOTES RECEIVABLE Notes receivable are stated at the principal amount outstanding. Interest income on notes receivable is recognized over the term of the note and is computed using the simple interest method on principal amounts outstanding. INCOME TAXES In accordance with Section 501(c)(3) of the Internal Revenue Code, GNDC is exempt from federal income taxes. Consequently, no provision for Federal income taxes is included in the accompanying consolidated financial statements. Guadalupe-Saldana, Guadalupe Jeremiah, de Lopez, GFC, and Escuela Nueva have elected to be taxed as limited partnerships. Under such elections, federal taxable income or loss and tax credits are passed through to the individual partners. Texas state taxes are imposed at the entity level. Any federal taxes due by GNDC, as the general partner, or any state taxes due by the limited partnerships, are recognized in the financial statements when incurred, as tax expense and tax liability. GNDC’s policy is to record interest and penalties related to income taxes as interest and other expense and federal or state taxes as tax expense. FIXED ASSETS Acquisitions of property and equipment valued at $1,000 or more and a useful life greater than one year are capitalized at cost if purchased, or estimated fair market value on the date of donation, if contributed. Repairs and maintenance costs are expended as incurred. Depreciation is computed using the straight-line method based on the estimated useful life of the asset, which is 5 years for furniture and equipment and 20 years for infrastructure. RENTAL REAL ESTATE Rental real estate consists of land, housing units, and closing costs. Rental real estate is capitalized at cost, which includes the cost of preacquisition, acquisition, development, and construction. Housing units leased are depreciated using the straight-line method based on an estimated useful life of 25 years. Housing units leased and held for sale are restricted for rental and sales to families with low incomes. Housing units held for sale are set to be sold to families with low income in subsequent years. Upon the sale of housing units, the difference between the cost and sale proceeds results in a net gain or loss. De Minimis Rate Used: N Rate Explanation: Elected not to use DISAGGREGATION OF REVENUE See the Notes to the SEFA for chart/table Revenue earned at a point in time consists of the gross amount earned for homes sold during the year, amounts earned for the completion of specific performance obligations under the fee for service contract, and consulting fees. Property sales are recorded net of the cost of homes on the statement of activities. CONTRACT BALANCES Contracts receivable relate to the amount due from the sale of a property in prior years. The receivable balance at 31 December 2024 and 2023 was $88,325 and $93,425 respectively. The receivable is due in monthly installments of $425 through 2042.

Title: NOTES RECEIVABLE Accounting Policies: NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES FINANCIAL STATEMENT PRESENTATION Net assets are classified based on the existence or absence of donor-imposed restrictions. Accordingly, net assets and changes therein are classified and reported as follows: Net Assets Without Donor Restrictions Net assets available for use in general operations and not subject to donor restrictions. Net Assets With Donor Restrictions Net assets subject to donor-imposed restrictions. Some donor restrictions are temporary in nature, such as those that will be met by the passage of time or other events specified by the donor. Other donor-imposed restrictions are perpetual in nature, where the donor stipulates that resources be maintained in perpetuity. Donor-imposed restrictions are released when a restriction expires, that is when the stipulated time has elapsed, when the stipulated purpose for which the resource was restricted has been fulfilled, or both. BASIS OF ACCOUNTING GNDC uses the accrual method of accounting which recognizes revenue when earned and expenses when incurred. RESTRICTED CASH At 31 December 2024 and 2023, GNDC has restricted cash of $864,505 and 263,407, respectively, which is held in escrow by the lender for replacement reserves, working capital, operating deficit, and completion assurance. These funds are required to be held in a separate account. The following table provides a reconciliation of cash and restricted cash reported within the statements of financial position to the sum of the corresponding amounts within the statements of cash flows. 2024 2023 Cash $2,265,126 $3,453,630 Restricted cash held in escrow 864,505 263,407 $3,129,631 $3,717,037 REVENUE Unconditional grants and contributions received are recorded at fair value on the date of the award as with donor restrictions or without donor restrictions depending on the existence and/or nature of any donor-imposed restrictions. FORGIVENESS OF INTEREST GNDC has several forgivable loans with stated interest rates of zero percent. Interest related to these loans is considered forgiven annually if GNDC is in compliance with the terms of the loan agreements. The forgiven interest is calculated using a market rate of 5%. RENTAL OPERATIONS GNDC leases its real estate properties as single family residences, duplexes, and apartment complexes under operating leases that are cancellable with 30 days notice. Generally, these leases have twelve month terms, automatically renewing on a month-to-month basis thereafter. Tenants pay a monthly rate established in lease agreements. FEE FOR SERVICE CONTRACT Revenue under the fee for service contract is earned upon completion of set objectives and deliverables defined in the contract. PROPERTY SALES Revenue from property sales is recognized at a point in time upon completion of the sale when the title of the property transfers to the customer. Payment is due upon completion of the sale. The sales price is established in the purchase agreements. There is typically no financing component because payments are received within one year of the sale. SUBSEQUENT EVENTS Management of GNDC has evaluated subsequent events for disclosure through the date of the Independent Auditor’s Report, the date the consolidated financial statements were available to be issued. ESTIMATES The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. FUNCTIONAL EXPENSE ALLOCATION The consolidated financial statements report certain categories of expenses that are attributed to more than one program or supporting function. Therefore, expenses require allocation on a reasonable basis that is consistently applied. The expenses that are allocated are depreciation, payroll, insurance, utilities, legal, loss on transfer, and other, which are allocated based on personnel time spent on each area as estimated by management. NOTES RECEIVABLE Notes receivable are stated at the principal amount outstanding. Interest income on notes receivable is recognized over the term of the note and is computed using the simple interest method on principal amounts outstanding. INCOME TAXES In accordance with Section 501(c)(3) of the Internal Revenue Code, GNDC is exempt from federal income taxes. Consequently, no provision for Federal income taxes is included in the accompanying consolidated financial statements. Guadalupe-Saldana, Guadalupe Jeremiah, de Lopez, GFC, and Escuela Nueva have elected to be taxed as limited partnerships. Under such elections, federal taxable income or loss and tax credits are passed through to the individual partners. Texas state taxes are imposed at the entity level. Any federal taxes due by GNDC, as the general partner, or any state taxes due by the limited partnerships, are recognized in the financial statements when incurred, as tax expense and tax liability. GNDC’s policy is to record interest and penalties related to income taxes as interest and other expense and federal or state taxes as tax expense. FIXED ASSETS Acquisitions of property and equipment valued at $1,000 or more and a useful life greater than one year are capitalized at cost if purchased, or estimated fair market value on the date of donation, if contributed. Repairs and maintenance costs are expended as incurred. Depreciation is computed using the straight-line method based on the estimated useful life of the asset, which is 5 years for furniture and equipment and 20 years for infrastructure. RENTAL REAL ESTATE Rental real estate consists of land, housing units, and closing costs. Rental real estate is capitalized at cost, which includes the cost of preacquisition, acquisition, development, and construction. Housing units leased are depreciated using the straight-line method based on an estimated useful life of 25 years. Housing units leased and held for sale are restricted for rental and sales to families with low incomes. Housing units held for sale are set to be sold to families with low income in subsequent years. Upon the sale of housing units, the difference between the cost and sale proceeds results in a net gain or loss. De Minimis Rate Used: N Rate Explanation: Elected not to use During 2010, GNDC entered into six note receivable agreements as the result of the sale of six properties. The properties were sold by an independent party at appraised fair market value, but with the seller accepting amounts less than fair market value. The cash portion of the sales were financed by the purchasers with bank mortgages and down payment assistance from the City of Austin. The difference between the appraised value sales price and the cash required at purchase was secured by a third lien held by GNDC. The third lien note also provided GNDC with a share of equity based on the percentage value of its lien relative to the appraised value of the property. Based on current market value estimates, GNDC’s interest in any appreciated value over the recorded value of the third lien notes is not considered significant at year end. The notes are collateralized by real property as described in the note agreements. GNDC’s access to the collateral is based on normal legal foreclosure processes. If the debtors fail to perform according to the terms of the agreements, and the collateral proves to be of no value, GNDC would incur a loss equal to the principal balance receivable. During 2023, GNDC became controlling entity of La Vista de Guadalupe, as of year end all notes receivable from GFC are eliminated on the consolidated financial statements. See the Notes to the SEFA for chart/table

Title: NOTES PAYABLE Accounting Policies: NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES FINANCIAL STATEMENT PRESENTATION Net assets are classified based on the existence or absence of donor-imposed restrictions. Accordingly, net assets and changes therein are classified and reported as follows: Net Assets Without Donor Restrictions Net assets available for use in general operations and not subject to donor restrictions. Net Assets With Donor Restrictions Net assets subject to donor-imposed restrictions. Some donor restrictions are temporary in nature, such as those that will be met by the passage of time or other events specified by the donor. Other donor-imposed restrictions are perpetual in nature, where the donor stipulates that resources be maintained in perpetuity. Donor-imposed restrictions are released when a restriction expires, that is when the stipulated time has elapsed, when the stipulated purpose for which the resource was restricted has been fulfilled, or both. BASIS OF ACCOUNTING GNDC uses the accrual method of accounting which recognizes revenue when earned and expenses when incurred. RESTRICTED CASH At 31 December 2024 and 2023, GNDC has restricted cash of $864,505 and 263,407, respectively, which is held in escrow by the lender for replacement reserves, working capital, operating deficit, and completion assurance. These funds are required to be held in a separate account. The following table provides a reconciliation of cash and restricted cash reported within the statements of financial position to the sum of the corresponding amounts within the statements of cash flows. 2024 2023 Cash $2,265,126 $3,453,630 Restricted cash held in escrow 864,505 263,407 $3,129,631 $3,717,037 REVENUE Unconditional grants and contributions received are recorded at fair value on the date of the award as with donor restrictions or without donor restrictions depending on the existence and/or nature of any donor-imposed restrictions. FORGIVENESS OF INTEREST GNDC has several forgivable loans with stated interest rates of zero percent. Interest related to these loans is considered forgiven annually if GNDC is in compliance with the terms of the loan agreements. The forgiven interest is calculated using a market rate of 5%. RENTAL OPERATIONS GNDC leases its real estate properties as single family residences, duplexes, and apartment complexes under operating leases that are cancellable with 30 days notice. Generally, these leases have twelve month terms, automatically renewing on a month-to-month basis thereafter. Tenants pay a monthly rate established in lease agreements. FEE FOR SERVICE CONTRACT Revenue under the fee for service contract is earned upon completion of set objectives and deliverables defined in the contract. PROPERTY SALES Revenue from property sales is recognized at a point in time upon completion of the sale when the title of the property transfers to the customer. Payment is due upon completion of the sale. The sales price is established in the purchase agreements. There is typically no financing component because payments are received within one year of the sale. SUBSEQUENT EVENTS Management of GNDC has evaluated subsequent events for disclosure through the date of the Independent Auditor’s Report, the date the consolidated financial statements were available to be issued. ESTIMATES The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. FUNCTIONAL EXPENSE ALLOCATION The consolidated financial statements report certain categories of expenses that are attributed to more than one program or supporting function. Therefore, expenses require allocation on a reasonable basis that is consistently applied. The expenses that are allocated are depreciation, payroll, insurance, utilities, legal, loss on transfer, and other, which are allocated based on personnel time spent on each area as estimated by management. NOTES RECEIVABLE Notes receivable are stated at the principal amount outstanding. Interest income on notes receivable is recognized over the term of the note and is computed using the simple interest method on principal amounts outstanding. INCOME TAXES In accordance with Section 501(c)(3) of the Internal Revenue Code, GNDC is exempt from federal income taxes. Consequently, no provision for Federal income taxes is included in the accompanying consolidated financial statements. Guadalupe-Saldana, Guadalupe Jeremiah, de Lopez, GFC, and Escuela Nueva have elected to be taxed as limited partnerships. Under such elections, federal taxable income or loss and tax credits are passed through to the individual partners. Texas state taxes are imposed at the entity level. Any federal taxes due by GNDC, as the general partner, or any state taxes due by the limited partnerships, are recognized in the financial statements when incurred, as tax expense and tax liability. GNDC’s policy is to record interest and penalties related to income taxes as interest and other expense and federal or state taxes as tax expense. FIXED ASSETS Acquisitions of property and equipment valued at $1,000 or more and a useful life greater than one year are capitalized at cost if purchased, or estimated fair market value on the date of donation, if contributed. Repairs and maintenance costs are expended as incurred. Depreciation is computed using the straight-line method based on the estimated useful life of the asset, which is 5 years for furniture and equipment and 20 years for infrastructure. RENTAL REAL ESTATE Rental real estate consists of land, housing units, and closing costs. Rental real estate is capitalized at cost, which includes the cost of preacquisition, acquisition, development, and construction. Housing units leased are depreciated using the straight-line method based on an estimated useful life of 25 years. Housing units leased and held for sale are restricted for rental and sales to families with low incomes. Housing units held for sale are set to be sold to families with low income in subsequent years. Upon the sale of housing units, the difference between the cost and sale proceeds results in a net gain or loss. De Minimis Rate Used: N Rate Explanation: Elected not to use See the Notes to the SEFA for chart/table

Title: NET ASSETS WITH DONOR RESTRICTIONS Accounting Policies: NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES FINANCIAL STATEMENT PRESENTATION Net assets are classified based on the existence or absence of donor-imposed restrictions. Accordingly, net assets and changes therein are classified and reported as follows: Net Assets Without Donor Restrictions Net assets available for use in general operations and not subject to donor restrictions. Net Assets With Donor Restrictions Net assets subject to donor-imposed restrictions. Some donor restrictions are temporary in nature, such as those that will be met by the passage of time or other events specified by the donor. Other donor-imposed restrictions are perpetual in nature, where the donor stipulates that resources be maintained in perpetuity. Donor-imposed restrictions are released when a restriction expires, that is when the stipulated time has elapsed, when the stipulated purpose for which the resource was restricted has been fulfilled, or both. BASIS OF ACCOUNTING GNDC uses the accrual method of accounting which recognizes revenue when earned and expenses when incurred. RESTRICTED CASH At 31 December 2024 and 2023, GNDC has restricted cash of $864,505 and 263,407, respectively, which is held in escrow by the lender for replacement reserves, working capital, operating deficit, and completion assurance. These funds are required to be held in a separate account. The following table provides a reconciliation of cash and restricted cash reported within the statements of financial position to the sum of the corresponding amounts within the statements of cash flows. 2024 2023 Cash $2,265,126 $3,453,630 Restricted cash held in escrow 864,505 263,407 $3,129,631 $3,717,037 REVENUE Unconditional grants and contributions received are recorded at fair value on the date of the award as with donor restrictions or without donor restrictions depending on the existence and/or nature of any donor-imposed restrictions. FORGIVENESS OF INTEREST GNDC has several forgivable loans with stated interest rates of zero percent. Interest related to these loans is considered forgiven annually if GNDC is in compliance with the terms of the loan agreements. The forgiven interest is calculated using a market rate of 5%. RENTAL OPERATIONS GNDC leases its real estate properties as single family residences, duplexes, and apartment complexes under operating leases that are cancellable with 30 days notice. Generally, these leases have twelve month terms, automatically renewing on a month-to-month basis thereafter. Tenants pay a monthly rate established in lease agreements. FEE FOR SERVICE CONTRACT Revenue under the fee for service contract is earned upon completion of set objectives and deliverables defined in the contract. PROPERTY SALES Revenue from property sales is recognized at a point in time upon completion of the sale when the title of the property transfers to the customer. Payment is due upon completion of the sale. The sales price is established in the purchase agreements. There is typically no financing component because payments are received within one year of the sale. SUBSEQUENT EVENTS Management of GNDC has evaluated subsequent events for disclosure through the date of the Independent Auditor’s Report, the date the consolidated financial statements were available to be issued. ESTIMATES The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. FUNCTIONAL EXPENSE ALLOCATION The consolidated financial statements report certain categories of expenses that are attributed to more than one program or supporting function. Therefore, expenses require allocation on a reasonable basis that is consistently applied. The expenses that are allocated are depreciation, payroll, insurance, utilities, legal, loss on transfer, and other, which are allocated based on personnel time spent on each area as estimated by management. NOTES RECEIVABLE Notes receivable are stated at the principal amount outstanding. Interest income on notes receivable is recognized over the term of the note and is computed using the simple interest method on principal amounts outstanding. INCOME TAXES In accordance with Section 501(c)(3) of the Internal Revenue Code, GNDC is exempt from federal income taxes. Consequently, no provision for Federal income taxes is included in the accompanying consolidated financial statements. Guadalupe-Saldana, Guadalupe Jeremiah, de Lopez, GFC, and Escuela Nueva have elected to be taxed as limited partnerships. Under such elections, federal taxable income or loss and tax credits are passed through to the individual partners. Texas state taxes are imposed at the entity level. Any federal taxes due by GNDC, as the general partner, or any state taxes due by the limited partnerships, are recognized in the financial statements when incurred, as tax expense and tax liability. GNDC’s policy is to record interest and penalties related to income taxes as interest and other expense and federal or state taxes as tax expense. FIXED ASSETS Acquisitions of property and equipment valued at $1,000 or more and a useful life greater than one year are capitalized at cost if purchased, or estimated fair market value on the date of donation, if contributed. Repairs and maintenance costs are expended as incurred. Depreciation is computed using the straight-line method based on the estimated useful life of the asset, which is 5 years for furniture and equipment and 20 years for infrastructure. RENTAL REAL ESTATE Rental real estate consists of land, housing units, and closing costs. Rental real estate is capitalized at cost, which includes the cost of preacquisition, acquisition, development, and construction. Housing units leased are depreciated using the straight-line method based on an estimated useful life of 25 years. Housing units leased and held for sale are restricted for rental and sales to families with low incomes. Housing units held for sale are set to be sold to families with low income in subsequent years. Upon the sale of housing units, the difference between the cost and sale proceeds results in a net gain or loss. De Minimis Rate Used: N Rate Explanation: Elected not to use See the Notes to the SEFA for chart/table

Title: LIQUIDITY AND AVAILABILITY Accounting Policies: NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES FINANCIAL STATEMENT PRESENTATION Net assets are classified based on the existence or absence of donor-imposed restrictions. Accordingly, net assets and changes therein are classified and reported as follows: Net Assets Without Donor Restrictions Net assets available for use in general operations and not subject to donor restrictions. Net Assets With Donor Restrictions Net assets subject to donor-imposed restrictions. Some donor restrictions are temporary in nature, such as those that will be met by the passage of time or other events specified by the donor. Other donor-imposed restrictions are perpetual in nature, where the donor stipulates that resources be maintained in perpetuity. Donor-imposed restrictions are released when a restriction expires, that is when the stipulated time has elapsed, when the stipulated purpose for which the resource was restricted has been fulfilled, or both. BASIS OF ACCOUNTING GNDC uses the accrual method of accounting which recognizes revenue when earned and expenses when incurred. RESTRICTED CASH At 31 December 2024 and 2023, GNDC has restricted cash of $864,505 and 263,407, respectively, which is held in escrow by the lender for replacement reserves, working capital, operating deficit, and completion assurance. These funds are required to be held in a separate account. The following table provides a reconciliation of cash and restricted cash reported within the statements of financial position to the sum of the corresponding amounts within the statements of cash flows. 2024 2023 Cash $2,265,126 $3,453,630 Restricted cash held in escrow 864,505 263,407 $3,129,631 $3,717,037 REVENUE Unconditional grants and contributions received are recorded at fair value on the date of the award as with donor restrictions or without donor restrictions depending on the existence and/or nature of any donor-imposed restrictions. FORGIVENESS OF INTEREST GNDC has several forgivable loans with stated interest rates of zero percent. Interest related to these loans is considered forgiven annually if GNDC is in compliance with the terms of the loan agreements. The forgiven interest is calculated using a market rate of 5%. RENTAL OPERATIONS GNDC leases its real estate properties as single family residences, duplexes, and apartment complexes under operating leases that are cancellable with 30 days notice. Generally, these leases have twelve month terms, automatically renewing on a month-to-month basis thereafter. Tenants pay a monthly rate established in lease agreements. FEE FOR SERVICE CONTRACT Revenue under the fee for service contract is earned upon completion of set objectives and deliverables defined in the contract. PROPERTY SALES Revenue from property sales is recognized at a point in time upon completion of the sale when the title of the property transfers to the customer. Payment is due upon completion of the sale. The sales price is established in the purchase agreements. There is typically no financing component because payments are received within one year of the sale. SUBSEQUENT EVENTS Management of GNDC has evaluated subsequent events for disclosure through the date of the Independent Auditor’s Report, the date the consolidated financial statements were available to be issued. ESTIMATES The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. FUNCTIONAL EXPENSE ALLOCATION The consolidated financial statements report certain categories of expenses that are attributed to more than one program or supporting function. Therefore, expenses require allocation on a reasonable basis that is consistently applied. The expenses that are allocated are depreciation, payroll, insurance, utilities, legal, loss on transfer, and other, which are allocated based on personnel time spent on each area as estimated by management. NOTES RECEIVABLE Notes receivable are stated at the principal amount outstanding. Interest income on notes receivable is recognized over the term of the note and is computed using the simple interest method on principal amounts outstanding. INCOME TAXES In accordance with Section 501(c)(3) of the Internal Revenue Code, GNDC is exempt from federal income taxes. Consequently, no provision for Federal income taxes is included in the accompanying consolidated financial statements. Guadalupe-Saldana, Guadalupe Jeremiah, de Lopez, GFC, and Escuela Nueva have elected to be taxed as limited partnerships. Under such elections, federal taxable income or loss and tax credits are passed through to the individual partners. Texas state taxes are imposed at the entity level. Any federal taxes due by GNDC, as the general partner, or any state taxes due by the limited partnerships, are recognized in the financial statements when incurred, as tax expense and tax liability. GNDC’s policy is to record interest and penalties related to income taxes as interest and other expense and federal or state taxes as tax expense. FIXED ASSETS Acquisitions of property and equipment valued at $1,000 or more and a useful life greater than one year are capitalized at cost if purchased, or estimated fair market value on the date of donation, if contributed. Repairs and maintenance costs are expended as incurred. Depreciation is computed using the straight-line method based on the estimated useful life of the asset, which is 5 years for furniture and equipment and 20 years for infrastructure. RENTAL REAL ESTATE Rental real estate consists of land, housing units, and closing costs. Rental real estate is capitalized at cost, which includes the cost of preacquisition, acquisition, development, and construction. Housing units leased are depreciated using the straight-line method based on an estimated useful life of 25 years. Housing units leased and held for sale are restricted for rental and sales to families with low incomes. Housing units held for sale are set to be sold to families with low income in subsequent years. Upon the sale of housing units, the difference between the cost and sale proceeds results in a net gain or loss. De Minimis Rate Used: N Rate Explanation: Elected not to use As part of GNDC’s liquidity management, it has a policy to structure its financial assets to be available as its general expenditures, liabilities and other obligations come due. The policy is that monthly revenues are to cover monthly expenses. Monthly revenues and expenditures are deposited in and deducted from GNDC’s operating accounts. As a part of GNDC’s policy, separate accounts are maintained for tenant security deposits and maintenance/replacement reserves. GNDC also tracks federal loan amounts in a separate account for construction costs. Several of GNDC’s notes payable are forgivable upon maturity if GNDC is in compliance with the Loan Agreements, see Note 14 for the terms of each note. See Note 1 for description on restricted cash. See note 15 for description of restricted net assets Financial assets available for general expenditure, within one year of the statement of financial position date, comprise the following: See the Notes to the SEFA for chart/table

Title: FEE FOR SERVICE CONTRACTS Accounting Policies: NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES FINANCIAL STATEMENT PRESENTATION Net assets are classified based on the existence or absence of donor-imposed restrictions. Accordingly, net assets and changes therein are classified and reported as follows: Net Assets Without Donor Restrictions Net assets available for use in general operations and not subject to donor restrictions. Net Assets With Donor Restrictions Net assets subject to donor-imposed restrictions. Some donor restrictions are temporary in nature, such as those that will be met by the passage of time or other events specified by the donor. Other donor-imposed restrictions are perpetual in nature, where the donor stipulates that resources be maintained in perpetuity. Donor-imposed restrictions are released when a restriction expires, that is when the stipulated time has elapsed, when the stipulated purpose for which the resource was restricted has been fulfilled, or both. BASIS OF ACCOUNTING GNDC uses the accrual method of accounting which recognizes revenue when earned and expenses when incurred. RESTRICTED CASH At 31 December 2024 and 2023, GNDC has restricted cash of $864,505 and 263,407, respectively, which is held in escrow by the lender for replacement reserves, working capital, operating deficit, and completion assurance. These funds are required to be held in a separate account. The following table provides a reconciliation of cash and restricted cash reported within the statements of financial position to the sum of the corresponding amounts within the statements of cash flows. 2024 2023 Cash $2,265,126 $3,453,630 Restricted cash held in escrow 864,505 263,407 $3,129,631 $3,717,037 REVENUE Unconditional grants and contributions received are recorded at fair value on the date of the award as with donor restrictions or without donor restrictions depending on the existence and/or nature of any donor-imposed restrictions. FORGIVENESS OF INTEREST GNDC has several forgivable loans with stated interest rates of zero percent. Interest related to these loans is considered forgiven annually if GNDC is in compliance with the terms of the loan agreements. The forgiven interest is calculated using a market rate of 5%. RENTAL OPERATIONS GNDC leases its real estate properties as single family residences, duplexes, and apartment complexes under operating leases that are cancellable with 30 days notice. Generally, these leases have twelve month terms, automatically renewing on a month-to-month basis thereafter. Tenants pay a monthly rate established in lease agreements. FEE FOR SERVICE CONTRACT Revenue under the fee for service contract is earned upon completion of set objectives and deliverables defined in the contract. PROPERTY SALES Revenue from property sales is recognized at a point in time upon completion of the sale when the title of the property transfers to the customer. Payment is due upon completion of the sale. The sales price is established in the purchase agreements. There is typically no financing component because payments are received within one year of the sale. SUBSEQUENT EVENTS Management of GNDC has evaluated subsequent events for disclosure through the date of the Independent Auditor’s Report, the date the consolidated financial statements were available to be issued. ESTIMATES The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. FUNCTIONAL EXPENSE ALLOCATION The consolidated financial statements report certain categories of expenses that are attributed to more than one program or supporting function. Therefore, expenses require allocation on a reasonable basis that is consistently applied. The expenses that are allocated are depreciation, payroll, insurance, utilities, legal, loss on transfer, and other, which are allocated based on personnel time spent on each area as estimated by management. NOTES RECEIVABLE Notes receivable are stated at the principal amount outstanding. Interest income on notes receivable is recognized over the term of the note and is computed using the simple interest method on principal amounts outstanding. INCOME TAXES In accordance with Section 501(c)(3) of the Internal Revenue Code, GNDC is exempt from federal income taxes. Consequently, no provision for Federal income taxes is included in the accompanying consolidated financial statements. Guadalupe-Saldana, Guadalupe Jeremiah, de Lopez, GFC, and Escuela Nueva have elected to be taxed as limited partnerships. Under such elections, federal taxable income or loss and tax credits are passed through to the individual partners. Texas state taxes are imposed at the entity level. Any federal taxes due by GNDC, as the general partner, or any state taxes due by the limited partnerships, are recognized in the financial statements when incurred, as tax expense and tax liability. GNDC’s policy is to record interest and penalties related to income taxes as interest and other expense and federal or state taxes as tax expense. FIXED ASSETS Acquisitions of property and equipment valued at $1,000 or more and a useful life greater than one year are capitalized at cost if purchased, or estimated fair market value on the date of donation, if contributed. Repairs and maintenance costs are expended as incurred. Depreciation is computed using the straight-line method based on the estimated useful life of the asset, which is 5 years for furniture and equipment and 20 years for infrastructure. RENTAL REAL ESTATE Rental real estate consists of land, housing units, and closing costs. Rental real estate is capitalized at cost, which includes the cost of preacquisition, acquisition, development, and construction. Housing units leased are depreciated using the straight-line method based on an estimated useful life of 25 years. Housing units leased and held for sale are restricted for rental and sales to families with low incomes. Housing units held for sale are set to be sold to families with low income in subsequent years. Upon the sale of housing units, the difference between the cost and sale proceeds results in a net gain or loss. De Minimis Rate Used: N Rate Explanation: Elected not to use See the Notes to the SEFA for chart/table

Title: CONTRIBUTED INTEREST, CONSTRUCTION COSTS, AND SERVICES Accounting Policies: NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES FINANCIAL STATEMENT PRESENTATION Net assets are classified based on the existence or absence of donor-imposed restrictions. Accordingly, net assets and changes therein are classified and reported as follows: Net Assets Without Donor Restrictions Net assets available for use in general operations and not subject to donor restrictions. Net Assets With Donor Restrictions Net assets subject to donor-imposed restrictions. Some donor restrictions are temporary in nature, such as those that will be met by the passage of time or other events specified by the donor. Other donor-imposed restrictions are perpetual in nature, where the donor stipulates that resources be maintained in perpetuity. Donor-imposed restrictions are released when a restriction expires, that is when the stipulated time has elapsed, when the stipulated purpose for which the resource was restricted has been fulfilled, or both. BASIS OF ACCOUNTING GNDC uses the accrual method of accounting which recognizes revenue when earned and expenses when incurred. RESTRICTED CASH At 31 December 2024 and 2023, GNDC has restricted cash of $864,505 and 263,407, respectively, which is held in escrow by the lender for replacement reserves, working capital, operating deficit, and completion assurance. These funds are required to be held in a separate account. The following table provides a reconciliation of cash and restricted cash reported within the statements of financial position to the sum of the corresponding amounts within the statements of cash flows. 2024 2023 Cash $2,265,126 $3,453,630 Restricted cash held in escrow 864,505 263,407 $3,129,631 $3,717,037 REVENUE Unconditional grants and contributions received are recorded at fair value on the date of the award as with donor restrictions or without donor restrictions depending on the existence and/or nature of any donor-imposed restrictions. FORGIVENESS OF INTEREST GNDC has several forgivable loans with stated interest rates of zero percent. Interest related to these loans is considered forgiven annually if GNDC is in compliance with the terms of the loan agreements. The forgiven interest is calculated using a market rate of 5%. RENTAL OPERATIONS GNDC leases its real estate properties as single family residences, duplexes, and apartment complexes under operating leases that are cancellable with 30 days notice. Generally, these leases have twelve month terms, automatically renewing on a month-to-month basis thereafter. Tenants pay a monthly rate established in lease agreements. FEE FOR SERVICE CONTRACT Revenue under the fee for service contract is earned upon completion of set objectives and deliverables defined in the contract. PROPERTY SALES Revenue from property sales is recognized at a point in time upon completion of the sale when the title of the property transfers to the customer. Payment is due upon completion of the sale. The sales price is established in the purchase agreements. There is typically no financing component because payments are received within one year of the sale. SUBSEQUENT EVENTS Management of GNDC has evaluated subsequent events for disclosure through the date of the Independent Auditor’s Report, the date the consolidated financial statements were available to be issued. ESTIMATES The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. FUNCTIONAL EXPENSE ALLOCATION The consolidated financial statements report certain categories of expenses that are attributed to more than one program or supporting function. Therefore, expenses require allocation on a reasonable basis that is consistently applied. The expenses that are allocated are depreciation, payroll, insurance, utilities, legal, loss on transfer, and other, which are allocated based on personnel time spent on each area as estimated by management. NOTES RECEIVABLE Notes receivable are stated at the principal amount outstanding. Interest income on notes receivable is recognized over the term of the note and is computed using the simple interest method on principal amounts outstanding. INCOME TAXES In accordance with Section 501(c)(3) of the Internal Revenue Code, GNDC is exempt from federal income taxes. Consequently, no provision for Federal income taxes is included in the accompanying consolidated financial statements. Guadalupe-Saldana, Guadalupe Jeremiah, de Lopez, GFC, and Escuela Nueva have elected to be taxed as limited partnerships. Under such elections, federal taxable income or loss and tax credits are passed through to the individual partners. Texas state taxes are imposed at the entity level. Any federal taxes due by GNDC, as the general partner, or any state taxes due by the limited partnerships, are recognized in the financial statements when incurred, as tax expense and tax liability. GNDC’s policy is to record interest and penalties related to income taxes as interest and other expense and federal or state taxes as tax expense. FIXED ASSETS Acquisitions of property and equipment valued at $1,000 or more and a useful life greater than one year are capitalized at cost if purchased, or estimated fair market value on the date of donation, if contributed. Repairs and maintenance costs are expended as incurred. Depreciation is computed using the straight-line method based on the estimated useful life of the asset, which is 5 years for furniture and equipment and 20 years for infrastructure. RENTAL REAL ESTATE Rental real estate consists of land, housing units, and closing costs. Rental real estate is capitalized at cost, which includes the cost of preacquisition, acquisition, development, and construction. Housing units leased are depreciated using the straight-line method based on an estimated useful life of 25 years. Housing units leased and held for sale are restricted for rental and sales to families with low incomes. Housing units held for sale are set to be sold to families with low income in subsequent years. Upon the sale of housing units, the difference between the cost and sale proceeds results in a net gain or loss. De Minimis Rate Used: N Rate Explanation: Elected not to use For the year ended 31 December, contributed nonfinancial assets and interest forgiveness recognized within the statement of activities include: See the Notes to the SEFA for chart/table Contributed nonfinancial assets did not have donor-imposed restrictions. Interest for forgivable loans is forgiven annually as GNDC is in compliance with loans. Forgivable interest is used for program activities and is valued at the estimated fair value in the financial statements based on the current rates in effect for similar loans at the time of the loan agreement. Contributed services consist of attorney fees used for program, management, and fundraising activities and are valued at the estimated fair value, in the financial statements based on current rates for similar services. Contributed construction costs were used during the development of East Knight house and are valued at the costs of construction services for similar construction projects.

Title: SUBSEQUENT EVENTS Accounting Policies: NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES FINANCIAL STATEMENT PRESENTATION Net assets are classified based on the existence or absence of donor-imposed restrictions. Accordingly, net assets and changes therein are classified and reported as follows: Net Assets Without Donor Restrictions Net assets available for use in general operations and not subject to donor restrictions. Net Assets With Donor Restrictions Net assets subject to donor-imposed restrictions. Some donor restrictions are temporary in nature, such as those that will be met by the passage of time or other events specified by the donor. Other donor-imposed restrictions are perpetual in nature, where the donor stipulates that resources be maintained in perpetuity. Donor-imposed restrictions are released when a restriction expires, that is when the stipulated time has elapsed, when the stipulated purpose for which the resource was restricted has been fulfilled, or both. BASIS OF ACCOUNTING GNDC uses the accrual method of accounting which recognizes revenue when earned and expenses when incurred. RESTRICTED CASH At 31 December 2024 and 2023, GNDC has restricted cash of $864,505 and 263,407, respectively, which is held in escrow by the lender for replacement reserves, working capital, operating deficit, and completion assurance. These funds are required to be held in a separate account. The following table provides a reconciliation of cash and restricted cash reported within the statements of financial position to the sum of the corresponding amounts within the statements of cash flows. 2024 2023 Cash $2,265,126 $3,453,630 Restricted cash held in escrow 864,505 263,407 $3,129,631 $3,717,037 REVENUE Unconditional grants and contributions received are recorded at fair value on the date of the award as with donor restrictions or without donor restrictions depending on the existence and/or nature of any donor-imposed restrictions. FORGIVENESS OF INTEREST GNDC has several forgivable loans with stated interest rates of zero percent. Interest related to these loans is considered forgiven annually if GNDC is in compliance with the terms of the loan agreements. The forgiven interest is calculated using a market rate of 5%. RENTAL OPERATIONS GNDC leases its real estate properties as single family residences, duplexes, and apartment complexes under operating leases that are cancellable with 30 days notice. Generally, these leases have twelve month terms, automatically renewing on a month-to-month basis thereafter. Tenants pay a monthly rate established in lease agreements. FEE FOR SERVICE CONTRACT Revenue under the fee for service contract is earned upon completion of set objectives and deliverables defined in the contract. PROPERTY SALES Revenue from property sales is recognized at a point in time upon completion of the sale when the title of the property transfers to the customer. Payment is due upon completion of the sale. The sales price is established in the purchase agreements. There is typically no financing component because payments are received within one year of the sale. SUBSEQUENT EVENTS Management of GNDC has evaluated subsequent events for disclosure through the date of the Independent Auditor’s Report, the date the consolidated financial statements were available to be issued. ESTIMATES The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. FUNCTIONAL EXPENSE ALLOCATION The consolidated financial statements report certain categories of expenses that are attributed to more than one program or supporting function. Therefore, expenses require allocation on a reasonable basis that is consistently applied. The expenses that are allocated are depreciation, payroll, insurance, utilities, legal, loss on transfer, and other, which are allocated based on personnel time spent on each area as estimated by management. NOTES RECEIVABLE Notes receivable are stated at the principal amount outstanding. Interest income on notes receivable is recognized over the term of the note and is computed using the simple interest method on principal amounts outstanding. INCOME TAXES In accordance with Section 501(c)(3) of the Internal Revenue Code, GNDC is exempt from federal income taxes. Consequently, no provision for Federal income taxes is included in the accompanying consolidated financial statements. Guadalupe-Saldana, Guadalupe Jeremiah, de Lopez, GFC, and Escuela Nueva have elected to be taxed as limited partnerships. Under such elections, federal taxable income or loss and tax credits are passed through to the individual partners. Texas state taxes are imposed at the entity level. Any federal taxes due by GNDC, as the general partner, or any state taxes due by the limited partnerships, are recognized in the financial statements when incurred, as tax expense and tax liability. GNDC’s policy is to record interest and penalties related to income taxes as interest and other expense and federal or state taxes as tax expense. FIXED ASSETS Acquisitions of property and equipment valued at $1,000 or more and a useful life greater than one year are capitalized at cost if purchased, or estimated fair market value on the date of donation, if contributed. Repairs and maintenance costs are expended as incurred. Depreciation is computed using the straight-line method based on the estimated useful life of the asset, which is 5 years for furniture and equipment and 20 years for infrastructure. RENTAL REAL ESTATE Rental real estate consists of land, housing units, and closing costs. Rental real estate is capitalized at cost, which includes the cost of preacquisition, acquisition, development, and construction. Housing units leased are depreciated using the straight-line method based on an estimated useful life of 25 years. Housing units leased and held for sale are restricted for rental and sales to families with low incomes. Housing units held for sale are set to be sold to families with low income in subsequent years. Upon the sale of housing units, the difference between the cost and sale proceeds results in a net gain or loss. De Minimis Rate Used: N Rate Explanation: Elected not to use Subsequent to year end the Escuela Nueva project was terminated. Due to the termination, $200,000 must be returned to two donors, however, the total impact of the termination is unknown.

Title: LOSS ON ACQUISITION Accounting Policies: NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES FINANCIAL STATEMENT PRESENTATION Net assets are classified based on the existence or absence of donor-imposed restrictions. Accordingly, net assets and changes therein are classified and reported as follows: Net Assets Without Donor Restrictions Net assets available for use in general operations and not subject to donor restrictions. Net Assets With Donor Restrictions Net assets subject to donor-imposed restrictions. Some donor restrictions are temporary in nature, such as those that will be met by the passage of time or other events specified by the donor. Other donor-imposed restrictions are perpetual in nature, where the donor stipulates that resources be maintained in perpetuity. Donor-imposed restrictions are released when a restriction expires, that is when the stipulated time has elapsed, when the stipulated purpose for which the resource was restricted has been fulfilled, or both. BASIS OF ACCOUNTING GNDC uses the accrual method of accounting which recognizes revenue when earned and expenses when incurred. RESTRICTED CASH At 31 December 2024 and 2023, GNDC has restricted cash of $864,505 and 263,407, respectively, which is held in escrow by the lender for replacement reserves, working capital, operating deficit, and completion assurance. These funds are required to be held in a separate account. The following table provides a reconciliation of cash and restricted cash reported within the statements of financial position to the sum of the corresponding amounts within the statements of cash flows. 2024 2023 Cash $2,265,126 $3,453,630 Restricted cash held in escrow 864,505 263,407 $3,129,631 $3,717,037 REVENUE Unconditional grants and contributions received are recorded at fair value on the date of the award as with donor restrictions or without donor restrictions depending on the existence and/or nature of any donor-imposed restrictions. FORGIVENESS OF INTEREST GNDC has several forgivable loans with stated interest rates of zero percent. Interest related to these loans is considered forgiven annually if GNDC is in compliance with the terms of the loan agreements. The forgiven interest is calculated using a market rate of 5%. RENTAL OPERATIONS GNDC leases its real estate properties as single family residences, duplexes, and apartment complexes under operating leases that are cancellable with 30 days notice. Generally, these leases have twelve month terms, automatically renewing on a month-to-month basis thereafter. Tenants pay a monthly rate established in lease agreements. FEE FOR SERVICE CONTRACT Revenue under the fee for service contract is earned upon completion of set objectives and deliverables defined in the contract. PROPERTY SALES Revenue from property sales is recognized at a point in time upon completion of the sale when the title of the property transfers to the customer. Payment is due upon completion of the sale. The sales price is established in the purchase agreements. There is typically no financing component because payments are received within one year of the sale. SUBSEQUENT EVENTS Management of GNDC has evaluated subsequent events for disclosure through the date of the Independent Auditor’s Report, the date the consolidated financial statements were available to be issued. ESTIMATES The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. FUNCTIONAL EXPENSE ALLOCATION The consolidated financial statements report certain categories of expenses that are attributed to more than one program or supporting function. Therefore, expenses require allocation on a reasonable basis that is consistently applied. The expenses that are allocated are depreciation, payroll, insurance, utilities, legal, loss on transfer, and other, which are allocated based on personnel time spent on each area as estimated by management. NOTES RECEIVABLE Notes receivable are stated at the principal amount outstanding. Interest income on notes receivable is recognized over the term of the note and is computed using the simple interest method on principal amounts outstanding. INCOME TAXES In accordance with Section 501(c)(3) of the Internal Revenue Code, GNDC is exempt from federal income taxes. Consequently, no provision for Federal income taxes is included in the accompanying consolidated financial statements. Guadalupe-Saldana, Guadalupe Jeremiah, de Lopez, GFC, and Escuela Nueva have elected to be taxed as limited partnerships. Under such elections, federal taxable income or loss and tax credits are passed through to the individual partners. Texas state taxes are imposed at the entity level. Any federal taxes due by GNDC, as the general partner, or any state taxes due by the limited partnerships, are recognized in the financial statements when incurred, as tax expense and tax liability. GNDC’s policy is to record interest and penalties related to income taxes as interest and other expense and federal or state taxes as tax expense. FIXED ASSETS Acquisitions of property and equipment valued at $1,000 or more and a useful life greater than one year are capitalized at cost if purchased, or estimated fair market value on the date of donation, if contributed. Repairs and maintenance costs are expended as incurred. Depreciation is computed using the straight-line method based on the estimated useful life of the asset, which is 5 years for furniture and equipment and 20 years for infrastructure. RENTAL REAL ESTATE Rental real estate consists of land, housing units, and closing costs. Rental real estate is capitalized at cost, which includes the cost of preacquisition, acquisition, development, and construction. Housing units leased are depreciated using the straight-line method based on an estimated useful life of 25 years. Housing units leased and held for sale are restricted for rental and sales to families with low incomes. Housing units held for sale are set to be sold to families with low income in subsequent years. Upon the sale of housing units, the difference between the cost and sale proceeds results in a net gain or loss. De Minimis Rate Used: N Rate Explanation: Elected not to use During 2023, GNDC acquired controlling interest of GFC as the Limited Partner, and accordingly consolidated the GFC financial statements into GNDC. GNDC recognized a loss in 2023 as a result of this acquisition.

Title: PRIOR PERIOD ADJUSTMENT Accounting Policies: NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES FINANCIAL STATEMENT PRESENTATION Net assets are classified based on the existence or absence of donor-imposed restrictions. Accordingly, net assets and changes therein are classified and reported as follows: Net Assets Without Donor Restrictions Net assets available for use in general operations and not subject to donor restrictions. Net Assets With Donor Restrictions Net assets subject to donor-imposed restrictions. Some donor restrictions are temporary in nature, such as those that will be met by the passage of time or other events specified by the donor. Other donor-imposed restrictions are perpetual in nature, where the donor stipulates that resources be maintained in perpetuity. Donor-imposed restrictions are released when a restriction expires, that is when the stipulated time has elapsed, when the stipulated purpose for which the resource was restricted has been fulfilled, or both. BASIS OF ACCOUNTING GNDC uses the accrual method of accounting which recognizes revenue when earned and expenses when incurred. RESTRICTED CASH At 31 December 2024 and 2023, GNDC has restricted cash of $864,505 and 263,407, respectively, which is held in escrow by the lender for replacement reserves, working capital, operating deficit, and completion assurance. These funds are required to be held in a separate account. The following table provides a reconciliation of cash and restricted cash reported within the statements of financial position to the sum of the corresponding amounts within the statements of cash flows. 2024 2023 Cash $2,265,126 $3,453,630 Restricted cash held in escrow 864,505 263,407 $3,129,631 $3,717,037 REVENUE Unconditional grants and contributions received are recorded at fair value on the date of the award as with donor restrictions or without donor restrictions depending on the existence and/or nature of any donor-imposed restrictions. FORGIVENESS OF INTEREST GNDC has several forgivable loans with stated interest rates of zero percent. Interest related to these loans is considered forgiven annually if GNDC is in compliance with the terms of the loan agreements. The forgiven interest is calculated using a market rate of 5%. RENTAL OPERATIONS GNDC leases its real estate properties as single family residences, duplexes, and apartment complexes under operating leases that are cancellable with 30 days notice. Generally, these leases have twelve month terms, automatically renewing on a month-to-month basis thereafter. Tenants pay a monthly rate established in lease agreements. FEE FOR SERVICE CONTRACT Revenue under the fee for service contract is earned upon completion of set objectives and deliverables defined in the contract. PROPERTY SALES Revenue from property sales is recognized at a point in time upon completion of the sale when the title of the property transfers to the customer. Payment is due upon completion of the sale. The sales price is established in the purchase agreements. There is typically no financing component because payments are received within one year of the sale. SUBSEQUENT EVENTS Management of GNDC has evaluated subsequent events for disclosure through the date of the Independent Auditor’s Report, the date the consolidated financial statements were available to be issued. ESTIMATES The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. FUNCTIONAL EXPENSE ALLOCATION The consolidated financial statements report certain categories of expenses that are attributed to more than one program or supporting function. Therefore, expenses require allocation on a reasonable basis that is consistently applied. The expenses that are allocated are depreciation, payroll, insurance, utilities, legal, loss on transfer, and other, which are allocated based on personnel time spent on each area as estimated by management. NOTES RECEIVABLE Notes receivable are stated at the principal amount outstanding. Interest income on notes receivable is recognized over the term of the note and is computed using the simple interest method on principal amounts outstanding. INCOME TAXES In accordance with Section 501(c)(3) of the Internal Revenue Code, GNDC is exempt from federal income taxes. Consequently, no provision for Federal income taxes is included in the accompanying consolidated financial statements. Guadalupe-Saldana, Guadalupe Jeremiah, de Lopez, GFC, and Escuela Nueva have elected to be taxed as limited partnerships. Under such elections, federal taxable income or loss and tax credits are passed through to the individual partners. Texas state taxes are imposed at the entity level. Any federal taxes due by GNDC, as the general partner, or any state taxes due by the limited partnerships, are recognized in the financial statements when incurred, as tax expense and tax liability. GNDC’s policy is to record interest and penalties related to income taxes as interest and other expense and federal or state taxes as tax expense. FIXED ASSETS Acquisitions of property and equipment valued at $1,000 or more and a useful life greater than one year are capitalized at cost if purchased, or estimated fair market value on the date of donation, if contributed. Repairs and maintenance costs are expended as incurred. Depreciation is computed using the straight-line method based on the estimated useful life of the asset, which is 5 years for furniture and equipment and 20 years for infrastructure. RENTAL REAL ESTATE Rental real estate consists of land, housing units, and closing costs. Rental real estate is capitalized at cost, which includes the cost of preacquisition, acquisition, development, and construction. Housing units leased are depreciated using the straight-line method based on an estimated useful life of 25 years. Housing units leased and held for sale are restricted for rental and sales to families with low incomes. Housing units held for sale are set to be sold to families with low income in subsequent years. Upon the sale of housing units, the difference between the cost and sale proceeds results in a net gain or loss. De Minimis Rate Used: N Rate Explanation: Elected not to use See the Notes to the SEFA for chart/table