Audit 39965

Title: Loan/loan guarantee outstanding balances Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types ofexpenditures are not allowable or are limited as to reimbursement. T De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Project has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. HOME INVESTMENT PARTNERSHIPS PROGRAM (14.239) - Balances outstanding at the end of the audit period were 674826. HOME INVESTMENT PARTNERSHIPS PROGRAM (14.239) - Balances outstanding at the end of the audit period were 3062557. HOME INVESTMENT PARTNERSHIPS PROGRAM (14.239) - Balances outstanding at the end of the audit period were 496536. HOME INVESTMENT PARTNERSHIPS PROGRAM (14.239) - Balances outstanding at the end of the audit period were 1159790. HOME INVESTMENT PARTNERSHIPS PROGRAM (14.239) - Balances outstanding at the end of the audit period were 143654. HOME INVESTMENT PARTNERSHIPS PROGRAM (14.239) - Balances outstanding at the end of the audit period were 74643. COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS (14.218) - Balances outstanding at the end of the audit period were 92788. PAYCHECK PROTECTION LOAN PROGRAM (PPP) (59.073) - Balances outstanding at the end of the audit period were 163000. PAYCHECK PROTECTION LOAN PROGRAM (PPP) (59.073) - Balances outstanding at the end of the audit period were 96300. DISASTER ASSISTANCE LOANS (59.008) - Balances outstanding at the end of the audit period were 2000000.

Title: Note C U.S. Department of Housing and Urban Development Advance Capital P Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types ofexpenditures are not allowable or are limited as to reimbursement. T De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Project has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The Project has received a U.S. Department of Housing and Urban Development Capital Advance financing under the provisions of Title F24 of the Code of Federal Regulations, Part 92 of the United States Department of Housing and Urban Development Regulations concerning the HOME Investment Partnerships Program. The grant balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. The Project received additional capital advances during the year. The balance of the grant outstanding on December 31, 2022 consists of: CFDA Number Program Name Outstanding Balance 14.239 Home Investment Partnerships Program $5,297,259. CFDA Number 59. $2,000,000.

Title: Note C U.S. Department of Housing and Urban Development Advance Capital P Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types ofexpenditures are not allowable or are limited as to reimbursement. T De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Project has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The Project has received a U.S. Department of Housing and Urban Development Capital Advance financing under the provisions of Title F24 of the Code of Federal Regulations, Part 92 of the United States Department of Housing and Urban Development Regulations concerning the HOME Investment Partnerships Program. The grant balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. The Project received additional capital advances during the year. The balance of the grant outstanding on December 31, 2022 consists of: CFDA Number Program Name Outstanding Balance 14.239 Home Investment Partnerships Program $5,297,259. CFDA Number 59. $2,000,000.

Title: Note D U.S. Small Business Administration Disaster Assistance Loan Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types ofexpenditures are not allowable or are limited as to reimbursement. T De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Project has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. On March 18, 2022, INDESOVI received an Economic Injury Disaster loan in the amount of $2,000,000 from SBA. This loan is payable in monthly installments of $8,975 including interest at 2.5%. Payments were scheduled to begin after twenty-four months of the loan proceeds disbursement. Secure by INDESOVI assets and due March 2052.On March 18, 2022,. CFDA Number Program Name Outstanding Balance 59.008 Disaster Assistance Program $2,000,000