Audit 10418

Title: Basis of presentation and signficant accounting policy Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal award activity of Doheny Eye Institute (the “Institute”) and is presented on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. The amounts reported as federal expenditures were obtained from the Institute’s general ledger. Because the Schedule presents only a selected portion of the operations of the Institute, it is not intended to and does not present the financial position, changes in net assets, and cash flows of the Institute. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. For the purposes of the Schedule, federal awards include all grants, contracts, and similar agreements entered into directly and indirectly between the Institute, agencies and departments of the federal government. De Minimis Rate Used: N Rate Explanation: The Institute does not use the 10% de minimis indirect cost rate, but a negotiated indirect cost rate. The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal award activity of Doheny Eye Institute (the “Institute”) and is presented on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. The amounts reported as federal expenditures were obtained from the Institute’s general ledger. Because the Schedule presents only a selected portion of the operations of the Institute, it is not intended to and does not present the financial position, changes in net assets, and cash flows of the Institute. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. For the purposes of the Schedule, federal awards include all grants, contracts, and similar agreements entered into directly and indirectly between the Institute, agencies and departments of the federal government. The Institute does not use the 10% de minimis indirect cost rate, but a negotiated indirect cost rate.

Title: Reconciliation of the schedule to the audited financial statements Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal award activity of Doheny Eye Institute (the “Institute”) and is presented on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. The amounts reported as federal expenditures were obtained from the Institute’s general ledger. Because the Schedule presents only a selected portion of the operations of the Institute, it is not intended to and does not present the financial position, changes in net assets, and cash flows of the Institute. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. For the purposes of the Schedule, federal awards include all grants, contracts, and similar agreements entered into directly and indirectly between the Institute, agencies and departments of the federal government. De Minimis Rate Used: N Rate Explanation: The Institute does not use the 10% de minimis indirect cost rate, but a negotiated indirect cost rate. See the Notes to the SEFA for chart/table.