Audit 304233

Accounting Policies: The accompanying supplementary schedule of expenditures of federal awards (the Schedule) summarizes the expenditures of Action for Boston Community Development, Inc. and subsidiaries (the Organization) under programs funded by the federal government for the year ended August 31, 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 (the 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 consolidated financial position, changes in net assets or cash flows of the Organization. For purposes of the Schedule, federal awards include all grants, contracts and similar agreements entered into directly between the Organization and agencies and departments of the federal government and all sub-awards passed through to the Organization by nonfederal organizations pursuant to federal grants, contracts and similar agreements. The Schedule also denotes awards passed through from the Organization to other nonfederal organizations. Expenditures for direct costs are recognized as incurred using the accrual basis of accounting and cost accounting principles of the Uniform Guidance. Under these cost principles, certain types of expenditures are not allowable or are limited as to reimbursement. Expenditures also include a portion of costs associated with general Organization activities (indirect costs) which are allocated to awards under negotiated formulas commonly referred to as indirect cost rates (note 3). De Minimis Rate Used: N Rate Explanation: The Uniform Guidance establishes the policy that a single Federal agency is responsible for the review, negotiation and approval of indirect cost rates for use on Federal awards by nonprofit organizations if the organization has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Normally, the Federal agency with the predominant financial interest is the cognizant agency. The Organization charges indirect costs to programs based on a provisional indirect cost rate that is approved by its cognizant agency, the U.S. Department of Health and Human Services, Division of Cost Allocation. Indirect cost recoveries are reported as part of federal expenditures on the Schedule.