Audit 308584

Title: NOTE 2 FEDERAL PROGRAMS ADMINISTERED BY THE ORGANIZATION Accounting Policies: NOTE 1 BASIS OF PRESENTATION The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Buckner International and Subsidiaries (the Organization) and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the consolidated financial statements. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10 percent de minimis indirect cost rate. U.S. Department of Agriculture Child and Adult Care Food Program The objective of this program is to provide reimbursements for nutritious meals and snacks to eligible children and adults who meet income and resource requirements. The Organization provides nutritious meals and snacks to children of low-income families in Buckner Children and Family Services programs in Lufkin. The Organization receives funding on a reimbursement basis through the Texas Department of Agriculture. Buckner no longer receives this funding as of February 2023 due to the closure of the Mary Jo Gordon Child Development Center in Lufkin. U.S. Department of Health and Human Services Chafee Foster Care Independence Program The Organization provides PAL Transition and Financial Support Services (TFSS) and PAL Life Skills Training in Region 1 (Lubbock and Amarillo) and Region 5 (Beaumont and Lufkin) to young adults, ages 14 to 21, who are transitioning from Child Protective Services care to independent living. PAL TFSS provides support for youth as they work toward self-sufficiency by gaining education, job skills, life management skills and social skills. PAL Life Skills Training provides help for youth to develop skills needed to function as adults as they transition to independent living. Core training topics include health and safety, housing and transportation, job readiness, financial management, life decisions and responsibilities, and personal and social relationships. The Organization receives funding for these services on a reimbursement basis through the Texas Department of Family and Protective Services (TDFPS). U.S. Department of Health and Human Services Community-Based Child Abuse Prevention: Fatherhood E.F.F.E.C.T. (Educating Fathers for Empowering Children Tomorrow) The Organization provides preventative services and has organized a community collaboration focused on developing resources for fathers and their families in Jefferson County (Beaumont area). The Fatherhood program provides evidence-based curricula (24/7 Dad) to fathers and father figures in individualized sessions and groups. Fathers are also provided service coordination as needed, which connects them to other resources in Jefferson County. The goals of the program are to empower and educate fathers, work together with community partners, and develop a community collaboration to build an infrastructure that supports fathers and strengthens families. U.S. Department of Health and Human Services Temporary Assistance for Needy Families The Organization has developed the Fostering Youth Independence (FYi) Centers (the Center) in Amarillo, Beaumont, and Lubbock. The Center provides a one-stop shop for teenagers and young adults aging out of the foster care system. The Center provides access to services including educational tutoring, GED preparation, and aid with technical schools or colleges. Assistance in finding employment, financial assistance, case management, counseling and mentor connections is also available. U.S. Department of Health and Human Services COVID-19 Provider Relief Fund The objective of the Provider Relief Fund (PRF) program is to support eligible health care providers in the battle against the COVID-19 pandemic. The PRF program provides relief funds to eligible providers of health care services and support for health care-related expenses or lost revenues attributable to coronavirus. The PRF program can be used by all Buckner locations and employees who qualify per the grant agreement. The Organization received PRF payments under the CARES Act from the Department of Health and Human Services (HHS) totaling $199,859 for PRF reporting periods 5 and 6. COVID-19 impacted Buckner operationally and financially in 2020, particularly in Buckner Retirement Services (BRS), where occupancy declined as a direct result of the pandemic due to operational restrictions placed on the communities. The PRF payments helped offset expenses and lost revenue resulting from the pandemic. Expenditure amounts are reported on the Schedule of Expenditures of Federal Awards (SEFA) included in this report. No lost revenue was reported for periods 5 and 6. The amount reported on the SEFA for the PRF program is based upon the PRF report required to be submitted to the Health Resources and Service Administration (HRSA) reporting portal. PRF expenditures on the SEFA cover period 5 of the HRSA reporting portal, as required by HHS. These expenditures were incurred between January 1, 2020, and December 31, 2023.

Title: NOTE 3 COMMITMENTS AND CONTINGENCIES Accounting Policies: NOTE 1 BASIS OF PRESENTATION The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Buckner International and Subsidiaries (the Organization) and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the consolidated financial statements. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10 percent de minimis indirect cost rate. Federal awards are subject to periodic review and assessment by the related federal and state agencies. The Organization believes the resolution of matters related to these reviews will not have a significant impact on the Organization’s financial position