Audit 9183

Title: Loan outstanding Accounting Policies: Expenditures reported on the Schedule of Expenditures of Federal Awards are presented on the accrual basis of accounting. Such expenditures are recognized following the cost principals contained in OMB’s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Under federal cost principles, certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: Business Outreach Center Network, Inc. and BOC Capital Corp. have elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance BOC Capital Corp. carry revolving loans from Small Business Administration. Loan balances outstanding at the beginning of the fiscal year plus any new loans received during the fiscal year are reported as federal expenditures in the Schedule. The balance of the loans outstanding at June 30, 2023 consists of: Federal Assistance Listing Number Program name Loan number Loan balance outstanding at 06/30/23 59.046 Microloan Program 9753505005 $ 681,607 59.046 Microloan Program 3916307005 893,945 59.046 Microloan Program 6454705002 - 59.046 Microloan Program 1836399101 834,491 $ 2,410,043

Title: Revolving Loan Fund Expenditures Accounting Policies: Expenditures reported on the Schedule of Expenditures of Federal Awards are presented on the accrual basis of accounting. Such expenditures are recognized following the cost principals contained in OMB’s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Under federal cost principles, certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: Business Outreach Center Network, Inc. and BOC Capital Corp. have elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance In accordance with program guidance under federal assistance listing number 11.307 – Economic Adjustment Assistance for Revolving Loan Fund (“RLF”), the expenditures for the year ended June 30, 2023 have been calculated as follows: Balance of RLF loans outstanding at year ended June 30, 2023, plus $ 821,249 Cash balance in RLF at year ended June 30, 2023, plus 950,827 Administrative expenses paid out of RLF income during year ended June 30, 2023, plus 48,999 Administrative expenses paid using award funds designated for administrative expenses during the year ended June 30, 2023, plus 259,450 The unpaid principal of all loans written off during the year ended June 30, 2023 - Total 2,080,525 Federal share of the RLF award 100% Total RLF federal expenditures $ 2,080,525