Audit 19162

Title: Basis of Presentation Accounting Policies: Summary of Significant Accounting Policies(1) Expenditures reported on the Schedule are reported on the accrual basis of accounting. Suchexpenditures 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.(2) The Agency has elected not to use the 10 percent de minimis indirect cost rate as allowedunder the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes theFederal grant activity of Horizons for Homeless Children (the Agency) under programs of thefederal government for the year ended June 30, 2022. The information in this schedule ispresented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for FederalAwards (Uniform Guidance). Because the Schedule presents only a selected portion of theoperations of the Agency, it is not intended to and does not present the financial position, changesin net assets or cash flows of the Agency.

Title: Subrecipients Accounting Policies: Summary of Significant Accounting Policies(1) Expenditures reported on the Schedule are reported on the accrual basis of accounting. Suchexpenditures 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.(2) The Agency has elected not to use the 10 percent de minimis indirect cost rate as allowedunder the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. There were no federal awards passed through to subrecipients by the Agency during fiscal year2022.

Title: Pass-through Funding from the Commonwealth of Massachusetts Dept of EEC Accounting Policies: Summary of Significant Accounting Policies(1) Expenditures reported on the Schedule are reported on the accrual basis of accounting. Suchexpenditures 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.(2) The Agency has elected not to use the 10 percent de minimis indirect cost rate as allowedunder the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Agency received funding under the Temporary Assistance Program for Needy Families(TANF) (CFDA 93.558) through the Commonwealth of Massachusetts Department of EarlyEducation and Care (the Commonwealth). The Commonwealth has transferred the TANF fundsinto the Child Care and Development Fund Cluster (CCDF) as allowed by the TANF program.The Uniform Guidance requires the transferred TANF funds to be reported as CCDF expenditures.The Agency has reported $1,355,418 in expenditures of TANF funds as CCDF expenditures underCFDA 93.575 on the Schedule.