Audit 15745

Title: Note 1 – Basis of presentation Accounting Policies: a. The Schedule is prepared from the Project’s accounting records and is not intended to present its financial position or the results of its operations. b. The financial transactions are recorded by the Project in accordance with the terms and conditions of the grants, which are consistent with accounting principles generally accepted in the United States of America. c. Expenditures are recognized in the accounting period in which the liability is incurred, if measurable or when actually paid, whichever occurs first. d. Expenditures are reported on the Schedule on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. e. The Project has elected not use the 10-percent of the minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: e. The Project has elected not use the 10-percent of the minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of Hogar Aurora, Inc. under the programs of the federal government for the year ended September 30, 2023. The information in the Schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations (CFR) Part 200, OMB’s Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards. Because the Schedule presents only a selected portion of the operations of Hogar Aurora, Inc., it is not intended to, and does not presents the financial position, changes in net assets or cash flows of Hogar Aurora, Inc.

Title: Note 2 – Summary of significant accounting policies Accounting Policies: a. The Schedule is prepared from the Project’s accounting records and is not intended to present its financial position or the results of its operations. b. The financial transactions are recorded by the Project in accordance with the terms and conditions of the grants, which are consistent with accounting principles generally accepted in the United States of America. c. Expenditures are recognized in the accounting period in which the liability is incurred, if measurable or when actually paid, whichever occurs first. d. Expenditures are reported on the Schedule on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. e. The Project has elected not use the 10-percent of the minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: e. The Project has elected not use the 10-percent of the minimis indirect cost rate as allowed under the Uniform Guidance. a. The Schedule is prepared from the Project’s accounting records and is not intended to present its financial position or the results of its operations. b. The financial transactions are recorded by the Project in accordance with the terms and conditions of the grants, which are consistent with accounting principles generally accepted in the United States of America. c. Expenditures are recognized in the accounting period in which the liability is incurred, if measurable or when actually paid, whichever occurs first. d. Expenditures are reported on the Schedule on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. e. The Project has elected not use the 10-percent of the minimis indirect cost rate as allowed under the Uniform Guidance.

Title: Note 3 – Assistance Listing Number (ALN) Accounting Policies: a. The Schedule is prepared from the Project’s accounting records and is not intended to present its financial position or the results of its operations. b. The financial transactions are recorded by the Project in accordance with the terms and conditions of the grants, which are consistent with accounting principles generally accepted in the United States of America. c. Expenditures are recognized in the accounting period in which the liability is incurred, if measurable or when actually paid, whichever occurs first. d. Expenditures are reported on the Schedule on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. e. The Project has elected not use the 10-percent of the minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: e. The Project has elected not use the 10-percent of the minimis indirect cost rate as allowed under the Uniform Guidance. The Assistance Listing Numbers included in the Schedule are determined based on the program name, review of grant contract information and OMB’s Assistance Listing.

Title: Note 4 – Major federal programs Accounting Policies: a. The Schedule is prepared from the Project’s accounting records and is not intended to present its financial position or the results of its operations. b. The financial transactions are recorded by the Project in accordance with the terms and conditions of the grants, which are consistent with accounting principles generally accepted in the United States of America. c. Expenditures are recognized in the accounting period in which the liability is incurred, if measurable or when actually paid, whichever occurs first. d. Expenditures are reported on the Schedule on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. e. The Project has elected not use the 10-percent of the minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: e. The Project has elected not use the 10-percent of the minimis indirect cost rate as allowed under the Uniform Guidance. Major programs are identified in the Summary of Auditors’ Result Section in the Schedule of Findings and Questioned Cost. Federal programs are presented by federal agency.