Audit 46747

Title: OTHER OMB UNIFORM GUIDANCE AUDITS Accounting Policies: For purposes of the schedule of expenditures of federal awards, federal awards include all grants, contracts, loans, andloan guarantee agreements entered into directly between the Corporation and agencies and departments of the federalgovernment. For the year ended December 31, 2022, the Corporation had no expenditures in the form of noncashassistance, had no federally funded insurance in effect for the year, and had no sub recipients. The accompanyingschedule of expenditures of federal awards is prepared on the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Embrace Living Development has other affiliates that have expended more than $750,000 in federal awards, which haveseparate OMB Uniform Guidance audits, which are not included in the accompanying schedule of expenditures of federalawards.

Title: Loan/loan guarantee outstanding balances Accounting Policies: For purposes of the schedule of expenditures of federal awards, federal awards include all grants, contracts, loans, andloan guarantee agreements entered into directly between the Corporation and agencies and departments of the federalgovernment. For the year ended December 31, 2022, the Corporation had no expenditures in the form of noncashassistance, had no federally funded insurance in effect for the year, and had no sub recipients. The accompanyingschedule of expenditures of federal awards is prepared on the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES (14.181) - Balances outstanding at the end of the audit period were 1429700. ASSISTED HOUSING STABILITY AND ENERGY AND GREEN RETROFIT INVESTMENTS PROGRAM (RECOVERY ACT FUNDED) (14.318) - Balances outstanding at the end of the audit period were 220497.

Title: SCOPE OF AUDIT PURSUANT TO UNIFORM GUIDANCE Accounting Policies: For purposes of the schedule of expenditures of federal awards, federal awards include all grants, contracts, loans, andloan guarantee agreements entered into directly between the Corporation and agencies and departments of the federalgovernment. For the year ended December 31, 2022, the Corporation had no expenditures in the form of noncashassistance, had no federally funded insurance in effect for the year, and had no sub recipients. The accompanyingschedule of expenditures of federal awards is prepared on the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. All federal grant activities of MORGAN PARK AND BEVERLY HANDICAPPED, INC. (the Corporation) are includedin the scope of the U.S. Office of Management and Budget (OMB) Uniform Guidance audit.Under Government Auditing Standards and U.S. Department of Housing and Urban Development (HUD)s Regulations,Supportive Housing for Persons with Disabilities is considered a major programs.