Title: Note A - 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. HCI has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. (1) Non-cash matching assistance not included in the Early Head Start expenditures above for the year ended June 30, 2023 is $323,249
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimus cost rate.
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of HCI under programs of the federal government for the year ended June 30, 2023 and is presented on the accrual basis of accounting. 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 HCI, it is not intended to and does not present the financial position, changes in net assets, or cash flows of HCI.
Title: Note B - Summary of Significant 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. HCI has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. (1) Non-cash matching assistance not included in the Early Head Start expenditures above for the year ended June 30, 2023 is $323,249
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimus 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. HCI has
elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. (1) Non-cash matching assistance not included in the Early Head Start expenditures above for the year ended June 30, 2023 is $323,249
Title: Note C - Pass-Through Funds to Subrecipients
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. HCI has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. (1) Non-cash matching assistance not included in the Early Head Start expenditures above for the year ended June 30, 2023 is $323,249
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimus cost rate.
During 2023, HCI did not pass through funds to sub-recipients.
Title: Note D - Provider Relief Funds
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. HCI has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. (1) Non-cash matching assistance not included in the Early Head Start expenditures above for the year ended June 30, 2023 is $323,249
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimus cost rate.
Under terms and conditions of the Provider Relief Funds (PRF) and American Rescue Plan (ARP) under the Coronavirus Aids, Relief, and Economic Security (CARES) Act, HCI is required to report COVID-19 related expenses and lost revenue to the U.S. Department of Health and Human Services (HHS). Guidance from HHS has required the reporting of the COVID-19 related expenses and lost revenue in certain reporting periods based on when the funds were received. During 2022, HCI received and recognized approximately $1,039,000 of PRF and ARP funds as revenue in its 2022 consolidated statements of operations and changes in net assets, respectively, as the terms and conditions of the PRF grant were satisfied. HHS requires these PRF amounts be reported on the 2023 Schedule, rather than the 2022 Schedule.
Title: Note E - Fair Market Value of Donated Personal Protective Equipment (Unaudited)
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. HCI has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. (1) Non-cash matching assistance not included in the Early Head Start expenditures above for the year ended June 30, 2023 is $323,249
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimus cost rate.
During 2023, HCI did not receive donated personal protective equipment from federal sources.