Audit 308834

Title: NOTE 1--BASIS OF PRESENTATION Accounting Policies: Expenditures are recognized following the cost principles contained in by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where applicable. Revenues from award programs are recognized in the period in which terms of the grant or contractual agreements have been met and the revenue earned and are included in the Organization’s financial statements as “Revenue and grants from governmental agencies”. De Minimis Rate Used: N Rate Explanation: We used the rates specified in the grant agreements The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Interfaith Shelter Network of San Diego (the “Organization”) under programs of the federal government for the year ended December 31, 2021. The information in this Schedule is presented in accordance with the requirements of by 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, changes in net assets or cash flows of the Organization.

Title: NOTE 2--SUMMARY OF SIGNIFICNT ACCOUNTING POLICIES Accounting Policies: Expenditures are recognized following the cost principles contained in by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where applicable. Revenues from award programs are recognized in the period in which terms of the grant or contractual agreements have been met and the revenue earned and are included in the Organization’s financial statements as “Revenue and grants from governmental agencies”. De Minimis Rate Used: N Rate Explanation: We used the rates specified in the grant agreements Expenditures are recognized following the cost principles contained in by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where applicable. Revenues from award programs are recognized in the period in which terms of the grant or contractual agreements have been met and the revenue earned and are included in the Organization’s financial statements as “Revenue and grants from governmental agencies”.

Title: NOTE 3--INDIRECT COST RATE Accounting Policies: Expenditures are recognized following the cost principles contained in by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where applicable. Revenues from award programs are recognized in the period in which terms of the grant or contractual agreements have been met and the revenue earned and are included in the Organization’s financial statements as “Revenue and grants from governmental agencies”. De Minimis Rate Used: N Rate Explanation: We used the rates specified in the grant agreements Interfaith Shelter Network of San Diego elected to not use the 10% de minimums cost rate as covered in the Uniform Guidance 2.CFR.200.414 Indirect costs.