Audit 296117

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the Schedule are reported 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. Child Development Centers, Inc. has elected to not use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: AUDITEE DID NOT FIND IT BENEFICIAL TO USE THE DE MINIMIS COST RATE. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Child Development Centers, Inc. under programs of the federal government for the year ended June 30, 2023. The information in this Schedule is presented in accordance with the equirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Child Development Centers, Inc., it is not intended to and does not present the assets, liabilities, net assets, public support, revenue, and expenses of the Child Development Centers, Inc.

Title: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Expenditures reported on the Schedule are reported 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. Child Development Centers, Inc. has elected to not use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: AUDITEE DID NOT FIND IT BENEFICIAL TO USE THE DE MINIMIS COST RATE. Expenditures reported on the Schedule are reported 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. Child Development Centers, Inc. has elected to not use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.

Title: SUBRECIPIENT FUNDING Accounting Policies: Expenditures reported on the Schedule are reported 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. Child Development Centers, Inc. has elected to not use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: AUDITEE DID NOT FIND IT BENEFICIAL TO USE THE DE MINIMIS COST RATE. There were no federal funds passed through to subrecipients from any of the federal programs.