Audit 307419

Title: 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. There were no awards passed through to subrecipients during the year ended December 31, 2023. De Minimis Rate Used: Y Rate Explanation: The Organization does not have a federally approved negotiated indirect cost rate agreement and, therefore, is 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 award activity of Children's Friend and Service (the Organization) under programs of the federal government for the year ended December 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 (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: Summary of 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, wherein certain types of expenditures are not allowable or are limited as to reimbursement. There were no awards passed through to subrecipients during the year ended December 31, 2023. De Minimis Rate Used: Y Rate Explanation: The Organization does not have a federally approved negotiated indirect cost rate agreement and, therefore, is subject to the 10-percent de minimis indirect cost rate under the Uniform Guidance. 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. There were no awards passed through to subrecipients during the year ended December 31, 2023.

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, wherein certain types of expenditures are not allowable or are limited as to reimbursement. There were no awards passed through to subrecipients during the year ended December 31, 2023. De Minimis Rate Used: Y Rate Explanation: The Organization does not have a federally approved negotiated indirect cost rate agreement and, therefore, is subject to the 10-percent de minimis indirect cost rate under the Uniform Guidance. The Organization does not have a federally approved negotiated indirect cost rate agreement and, therefore, is subject to the 10-percent de minimis indirect cost rate under the Uniform Guidance.

Title: Vouchers Redeemed Through the Special Supplemental Nutrition Program for Women, Infants and Children 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. There were no awards passed through to subrecipients during the year ended December 31, 2023. De Minimis Rate Used: Y Rate Explanation: The Organization does not have a federally approved negotiated indirect cost rate agreement and, therefore, is subject to the 10-percent de minimis indirect cost rate under the Uniform Guidance. The Organization provides services under the Special Supplemental Nutrition Program for Women, Infants and Children (WIC) for which it receives federal funds passed through the State of Rhode Island Department of Health (DOH). In addition to funding the program activities, DOH also provides vouchers to the Organization’s clients. The vouchers can be redeemed for basic food necessities as determined by DOH. The Organization distributes the vouchers but is not involved in their redemption. The value of redeemed vouchers included on the Schedule is provided by DOH and included at their request. This amount has not been subjected to auditing procedures.