Audit 310199

Title: GOVERNMENT AUDITS Accounting Policies: 1. BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Community Connections, Inc. under programs of the federal government for the year ended September 30, 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 Community Connections, Inc. it is not intended to and does not present the financial position, changes in net assets, or cash flows of Community Connections, Inc. 2. SUMMARY OF SIGNIFICANT 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 reimbursements. De Minimis Rate Used: N Rate Explanation: Community Connections, Inc. does not use the ten percent de minimis indirect cost rate allowed under the Uniform Guidance. Instead, the Community Connections, Inc. uses its negotiated indirect cost rate, currently 28.50% with the U.S. Department of Health and Human Services. The allowability of certain costs under government contracts and grants is subject to audit by the contracting agency. Certain indirect costs charged to contracts and grants are subject to revisions based on government audits of those costs. Management believes that contracts and grant costs are consistent with applicable government cost principles, and that costs subsequently disallowed, if any, upon audit by the government would not be material.