Audit 298803

Title: Note 1 - Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting, with the exception of Federal Assistance Listing Number 93.498, which is reported in accordance with the Health Resources and Services Administration’s Provider Relief Fund Reporting Portal time periods. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Shield has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Shield of David, Inc. d/b/a The Shield Institute (the “Shield”), for the year ended June 30, 2023. The information in the 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”). Because the Schedule presents only a selected portion of the operations of the Shield, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Shield.

Title: Note 2 - Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting, with the exception of Federal Assistance Listing Number 93.498, which is reported in accordance with the Health Resources and Services Administration’s Provider Relief Fund Reporting Portal time periods. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Shield has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Expenditures reported on the Schedule are reported on the accrual basis of accounting, with the exception of Federal Assistance Listing Number 93.498, which is reported in accordance with the Health Resources and Services Administration’s Provider Relief Fund Reporting Portal time periods. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or limited as to reimbursement.

Title: Note 3 - Indirect Cost Rates Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting, with the exception of Federal Assistance Listing Number 93.498, which is reported in accordance with the Health Resources and Services Administration’s Provider Relief Fund Reporting Portal time periods. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Shield has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The Shield has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.