Audit 307378

Title: General Information 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, Audit of States, Local Governments and Not for Profit Organizations wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal grant activity of the IRC’s Center for Economic Opportunity, Inc. (the “Organization”) under programs of the federal government as of and for the year ended September 30, 2023. The information in this Schedule is presented in accordance with the requirements of the 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, change in net assets or cash flows of the Organization

Title: 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, Audit of States, Local Governments and Not for Profit Organizations wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. Expenditures 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, Audit of States, Local Governments and Not for Profit Organizations wherein certain types of expenditures are not allowable or are limited as to reimbursement. Contributions Contributions received are recorded as without donor or with donor restrictions, depending on the existence and/or nature of donor’s restriction. All contributions are considered to be without donor restrictions unless specifically restricted by the donor. All donor-restricted support is reported as an increase in net assets with donor restrictions, depending on the nature of the restriction. When a restriction expires, that is, when a stipulated time restriction ends or purpose restriction is accomplished, net assets with donor restrictions are reclassified to net assets without donor restrictions and reported in the statement of activities as net assets released from restrictions. Grant Awards The Organization uses the accrual basis of accounting to report federal awards expended. Federal, state, and other grants awards received for specific purpose are recognized as support to the extent of the related expenses incurred in compliance with the specific restrictions.

Title: Relationship to Basic Financial Statements 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, Audit of States, Local Governments and Not for Profit Organizations wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. Federal program expenditures are reported in the statements of functional expenses as program expenses. In certain programs, the expenditures reported in the basic financial statements may differ due to capitalization of assets and matching or in-kind contributions.

Title: Indirect Cost Rate 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, Audit of States, Local Governments and Not for Profit Organizations wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. The Organization has elected to use the ten percent (10%) percent de minimis indirect cost rate allowed under the Uniform Guidance.