Audit 365366

Title: NOTE A - BASIS OF PRESENTATIO Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained on the OMB Guidance for Federal Financial Assistance, wherein certain types of expenditures are not allowable for or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Desha Area Directions, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the OMB Guidance for Federal Financial Assistance. The accompanying schedule of expenditures of federal awards includes the federal award activity of Desha Area Directions, Inc. and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (OMB Guidance for Federal Financial Assistance). Because the schedule presents only a selected portion of the operations of Desha Elderly Directions, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Desha Area Directions, Inc.

Title: NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained on the OMB Guidance for Federal Financial Assistance, wherein certain types of expenditures are not allowable for or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Desha Area Directions, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the OMB Guidance for Federal Financial Assistance. Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained on the OMB Guidance for Federal Financial Assistance, wherein certain types of expenditures are not allowable for or are limited as to reimbursement. Desha Area Directions, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the OMB Guidance for Federal Financial Assistance.

Title: NOTE C – U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT CAPITAL ADVANCE Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained on the OMB Guidance for Federal Financial Assistance, wherein certain types of expenditures are not allowable for or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Desha Area Directions, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the OMB Guidance for Federal Financial Assistance. Deahs Area Directions, Inc. has received a US Department of Housing and Urban Development Capital Advance under Section 811 of the Housing Act of 1959. The Capital Advance balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. Desha Area Directions, Inc. received no additional advances during the year. The balance of the Capital Advance at June 30, 2025 totaled $1,382,400.