Audit 413207

Notes to Schedule: (1) Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal award activity of AJFC Community Action Agency, Inc. (the “Agency”) under programs of the federal government for the Eleven-month period ended December 31, 2025. The information in the 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 (“Uniform Guidance”). Because the Schedule presents only a selected portion of the operations of the Agency, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Agency. (2) Summary of Significant Accounting Policies Expenditures reported on the Schedule are reported on the accrual basis of accounting and are recognized in accordance with the expenditure recognition requirements of the Uniform Guidance. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, whereby certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts, if any, represent adjustments or credits made in the normal course of business to amounts reported as federal expenditures. (3) Indirect Cost Rate AJFC Community Action Agency, Inc. has not elected to use the de minimis indirect cost rate of up to 15 percent of modified total direct costs permitted under 2 CFR § 200.414