Title: 1. BASIS OF PRESENTATION
Accounting Policies: 1. BASIS OF PRESENTATION
The accompanying schedule of expenditures of federal awards (the “Schedule”) summarizes
expenditures charged to federally funded grants and service contracts administered by the Corporation
for the year ended August 31, 2023. The Schedule should be read in conjunction with the consolidated
financial statements of the Corporation.
For purposes of the Schedule, federal awards include all grants, service contracts, and similar
agreements entered into directly between the Corporation and agencies and departments of the
federal government. Also included in the Schedule are all federal awards passed through to the
Corporation by other governmental entities and not‐for‐profit organizations pursuant to federal grants,
contracts, and similar agreements. Expenditures of government grant and service contract funds are to
be used for the purposes specified by the funding source, in accordance with 2 U.S. Code of Federal
Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements
for Federal Awards (Uniform Guidance).
The Schedule is prepared on the cash basis of accounting.
De Minimis Rate Used: N
Rate Explanation: Auditee utilized our DHHS Provisional Indirect Cost Rate for FY 2023.
The accompanying schedule of expenditures of federal awards (the “Schedule”) summarizes
expenditures charged to federally funded grants and service contracts administered by the
Corporation for the year ended August 31, 2023. The Schedule should be read in conjunction with the
consolidated financial statements of the Corporation.
For purposes of the Schedule, federal awards include all grants, service contracts, and similar
agreements entered into directly between the Corporation and agencies and departments of the
federal government. Also included in the Schedule are all federal awards passed through to the
Corporation by other governmental entities and not‐for‐profit organizations pursuant to federal
grants, contracts, and similar agreements. Expenditures of government grant and service contract
funds are to be used for the purposes specified by the funding source, in accordance with 2 U.S.
Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (Uniform Guidance).
The Schedule is prepared on the cash basis of accounting.
Title: 2. PROGRAM EXPENSES
Accounting Policies: 1. BASIS OF PRESENTATION
The accompanying schedule of expenditures of federal awards (the “Schedule”) summarizes
expenditures charged to federally funded grants and service contracts administered by the Corporation
for the year ended August 31, 2023. The Schedule should be read in conjunction with the consolidated
financial statements of the Corporation.
For purposes of the Schedule, federal awards include all grants, service contracts, and similar
agreements entered into directly between the Corporation and agencies and departments of the
federal government. Also included in the Schedule are all federal awards passed through to the
Corporation by other governmental entities and not‐for‐profit organizations pursuant to federal grants,
contracts, and similar agreements. Expenditures of government grant and service contract funds are to
be used for the purposes specified by the funding source, in accordance with 2 U.S. Code of Federal
Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements
for Federal Awards (Uniform Guidance).
The Schedule is prepared on the cash basis of accounting.
De Minimis Rate Used: N
Rate Explanation: Auditee utilized our DHHS Provisional Indirect Cost Rate for FY 2023.
Expenditures consist of direct and indirect costs. Direct costs are those that can be easily
identified with an individual federally sponsored project. The salary of a principal investigator
of a sponsored research project and the materials consumed by the project are examples of direct
costs.
Unlike direct costs, indirect costs cannot easily be identified with an individual federally
sponsored project. Indirect costs are the costs of services and resources that benefit many
sponsored projects as well as non‐sponsored projects and activities. Indirect costs consist of
expenses incurred for such items as administration, housekeeping, maintenance, and employee health
and welfare.
The Corporation and federal agencies use an indirect cost rate to charge indirect costs to
individual federally sponsored projects. The rate is the result of a number of cost allocation
procedures that the Corporation uses to allocate its indirect costs to both sponsored and
non‐sponsored activities. The costs allocated to sponsored projects are divided by the direct costs
of sponsored projects to arrive at a rate. The Department of Health and Human Services (DHHS) must
approve the rate before the Corporation can use it to charge indirect costs to federally sponsored
projects. The Corporation did not elect to use the de minimus indirect cost rate as allowed under
Uniform Guidance.
During the year ended August 31, 2023, the Corporation charged indirect costs using predetermined
DHHS approved rates. Indirect cost charges to federal awards for the year ended August 31, 2023
totaled $4,420,963. No federal awards were expended in the form of noncash awards, insurance, or
loans/guarantees.
Title: 3. CONTINGENCIES
Accounting Policies: 1. BASIS OF PRESENTATION
The accompanying schedule of expenditures of federal awards (the “Schedule”) summarizes
expenditures charged to federally funded grants and service contracts administered by the Corporation
for the year ended August 31, 2023. The Schedule should be read in conjunction with the consolidated
financial statements of the Corporation.
For purposes of the Schedule, federal awards include all grants, service contracts, and similar
agreements entered into directly between the Corporation and agencies and departments of the
federal government. Also included in the Schedule are all federal awards passed through to the
Corporation by other governmental entities and not‐for‐profit organizations pursuant to federal grants,
contracts, and similar agreements. Expenditures of government grant and service contract funds are to
be used for the purposes specified by the funding source, in accordance with 2 U.S. Code of Federal
Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements
for Federal Awards (Uniform Guidance).
The Schedule is prepared on the cash basis of accounting.
De Minimis Rate Used: N
Rate Explanation: Auditee utilized our DHHS Provisional Indirect Cost Rate for FY 2023.
All federal and pass‐through awards are subject to review and audit by the grantor agencies. Such
audits could lead to requests for reimbursement by the grantor agencies for costs disallowed under
the terms of the awards. It is the opinion of management that all costs charged against federal
awards are
allowable under the regulations for such programs.
Title: 4. COVID‐19 PROVIDER RELIEF FUNDS
Accounting Policies: 1. BASIS OF PRESENTATION
The accompanying schedule of expenditures of federal awards (the “Schedule”) summarizes
expenditures charged to federally funded grants and service contracts administered by the Corporation
for the year ended August 31, 2023. The Schedule should be read in conjunction with the consolidated
financial statements of the Corporation.
For purposes of the Schedule, federal awards include all grants, service contracts, and similar
agreements entered into directly between the Corporation and agencies and departments of the
federal government. Also included in the Schedule are all federal awards passed through to the
Corporation by other governmental entities and not‐for‐profit organizations pursuant to federal grants,
contracts, and similar agreements. Expenditures of government grant and service contract funds are to
be used for the purposes specified by the funding source, in accordance with 2 U.S. Code of Federal
Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements
for Federal Awards (Uniform Guidance).
The Schedule is prepared on the cash basis of accounting.
De Minimis Rate Used: N
Rate Explanation: Auditee utilized our DHHS Provisional Indirect Cost Rate for FY 2023.
The COVID‐19 Provider Relief Funds included in the Schedule were received by the following entities
(legal name and tax identification number (TIN)): Rehabilitation Institute of Chicago dba Shirley
Ryan
AbilityLab (TIN: 36‐2256036).