Audit 307402

Title: Basis of Presentation Accounting Policies: Expenditures 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. Pass-through entity identifying numbers are presented where available. For cost-reimbursement awards, revenues are recognized to the extent of expenditures. Expenditures have been recognized to the extent the related obligation was incurred within the applicable grant period and liquidated within 90 days after the end of the grant period. De Minimis Rate Used: N Rate Explanation: The Association has a federally approved negotiated indirect cost rate agreement and therefore is not subject to the 10-percent de minimis indirect cost rate under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Woonsocket Head Start Child Development Association, Incorporated (the Association) under programs of the federal government for the year ended August 31, 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 Association, it is not intended to and does not present the financial position, statement of activities or cash flows for Woonsocket Head Start Child Development Association, Incorporated.

Title: Summary of Significant Accounting Policies Accounting Policies: Expenditures 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. Pass-through entity identifying numbers are presented where available. For cost-reimbursement awards, revenues are recognized to the extent of expenditures. Expenditures have been recognized to the extent the related obligation was incurred within the applicable grant period and liquidated within 90 days after the end of the grant period. De Minimis Rate Used: N Rate Explanation: The Association has a federally approved negotiated indirect cost rate agreement and therefore is not subject to the 10-percent de minimis indirect cost rate under the Uniform Guidance. Expenditures 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. Pass-through entity identifying numbers are presented where available. For cost-reimbursement awards, revenues are recognized to the extent of expenditures. Expenditures have been recognized to the extent the related obligation was incurred within the applicable grant period and liquidated within 90 days after the end of the grant period.

Title: Indirect Cost Rate Accounting Policies: Expenditures 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. Pass-through entity identifying numbers are presented where available. For cost-reimbursement awards, revenues are recognized to the extent of expenditures. Expenditures have been recognized to the extent the related obligation was incurred within the applicable grant period and liquidated within 90 days after the end of the grant period. De Minimis Rate Used: N Rate Explanation: The Association has a federally approved negotiated indirect cost rate agreement and therefore is not subject to the 10-percent de minimis indirect cost rate under the Uniform Guidance. The Association has a federally approved negotiated indirect cost rate agreement and therefore is not subject to the 10-percent de minimis indirect cost rate under the Uniform Guidance.

Title: Head Start Accounting Policies: Expenditures 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. Pass-through entity identifying numbers are presented where available. For cost-reimbursement awards, revenues are recognized to the extent of expenditures. Expenditures have been recognized to the extent the related obligation was incurred within the applicable grant period and liquidated within 90 days after the end of the grant period. De Minimis Rate Used: N Rate Explanation: The Association has a federally approved negotiated indirect cost rate agreement and therefore is not subject to the 10-percent de minimis indirect cost rate under the Uniform Guidance. In accordance with the terms of the grant, during the year ended August 31, 2023, the Association expended matching contributions of $606,043, which includes state funding of $382,219.