Audit 291375

Title: RELATIONSHIP TO BASIC CONSOLIDATED FINANCIAL STATEMENTS Accounting Policies: GENERAL INFORMATION The accompanying schedule of expenditures of federal, state, and city awards (the Schedule) presents the activities in all federal, state, and city awards of Pathways to Housing PA, Inc. for the year ended June 30, 2023. All financial assistance received directly from federal agencies as well as financial assistance passed through other governmental agencies or nonprofit organizations are included in the Schedule. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). During the year ended June 30, 2023, Pathways to Housing PA, Inc. did not pass-through federal funding to subrecipients. BASIS OF ACCOUNTING The accompanying schedule is presented using the accrual basis of accounting. The amounts reported in this schedule as expenditures may differ from certain financial reports submitted to funding agencies because those reports may be submitted on either a cash or modified accrual basis of accounting. De Minimis Rate Used: Y Rate Explanation: Pathways to Housing PA, Inc. was eligible to use a federally approved indirect cost rate allowed under the Uniform Guidance of 13.25%. Federal, state, and city award expenditures are reported on the statement of functional expenditures as program costs. However, expenditures in the schedule of expenditures of federal, state, and city awards for certain programs which have incurred deficits have been limited to the related contracted amount. In addition, for certain programs, the expenditures reported in the basic financial statements may differ from the expenditures reported on the schedule of expenditures of federal, state, and city awards due to program expenditures exceeding grant or contract budget limitations, which are not included as federal, state, and city financial assistance.