Audit 301

Title: NOTE D--MATCHING CONTRIBUTIONS Accounting Policies: NOTE A--BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Head Start of Eastern Orange County, Inc. (a not-for-profit corporation) (the “Organization”) under programs of the federal government for the year ended April 30, 2023. 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). Because the Schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization. NOTE B--SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Accounting Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the applicable cost principles contained in Title 2 U.S. Code of Federal Regulations Part 230, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identification numbers are presented where available. Relationship to Basic Financial Statements Federal award revenues are reported in the basic financial statements as federal government revenue. The basic financial statements are presented using the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: The Organization has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Required matching contributions for program costs related to the Head Start program were made by the Organization. The matching contributions totaled approximately $767,000 for the program year May 1, 2022 to April 30, 2023. Included in that amount was approximately $210,000 in volunteer services that are not recorded in the basic financial statements.

Title: NOTE E--NONCASH ASSISTANCE Accounting Policies: NOTE A--BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Head Start of Eastern Orange County, Inc. (a not-for-profit corporation) (the “Organization”) under programs of the federal government for the year ended April 30, 2023. 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). Because the Schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization. NOTE B--SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Accounting Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the applicable cost principles contained in Title 2 U.S. Code of Federal Regulations Part 230, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identification numbers are presented where available. Relationship to Basic Financial Statements Federal award revenues are reported in the basic financial statements as federal government revenue. The basic financial statements are presented using the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: The Organization has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. There were no federal awards expended in the form of noncash assistance by the Organization during the year ended April 30, 2023, and accordingly, no amounts were reported on the Schedule.

Title: NOTE F--SUBRECIPIENTS Accounting Policies: NOTE A--BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Head Start of Eastern Orange County, Inc. (a not-for-profit corporation) (the “Organization”) under programs of the federal government for the year ended April 30, 2023. 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). Because the Schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization. NOTE B--SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Accounting Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the applicable cost principles contained in Title 2 U.S. Code of Federal Regulations Part 230, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identification numbers are presented where available. Relationship to Basic Financial Statements Federal award revenues are reported in the basic financial statements as federal government revenue. The basic financial statements are presented using the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: The Organization has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The Organization provided no federal awards to subrecipients during the year ended April 30, 2023, and accordingly, no amounts were reported on the Schedule.

Title: NOTE G--REPORTING Accounting Policies: NOTE A--BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Head Start of Eastern Orange County, Inc. (a not-for-profit corporation) (the “Organization”) under programs of the federal government for the year ended April 30, 2023. 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). Because the Schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization. NOTE B--SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Accounting Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the applicable cost principles contained in Title 2 U.S. Code of Federal Regulations Part 230, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identification numbers are presented where available. Relationship to Basic Financial Statements Federal award revenues are reported in the basic financial statements as federal government revenue. The basic financial statements are presented using the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: The Organization has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The final SF-425 report for the budget period ending April 30, 2023 was accurate and agreed with the Organization’s financial records.