Audit 31104

Title: DEPARTMENT OF HEATH AND HUMAN SERVICES PROVIDER RELIEF FUNDS Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) summarizes the expenditures of Kennedy Krieger Institute, Inc. and Affiliates (the "Institute") under programs of the Federal Government for the year ended June 30, 2022. The information presented in the Schedule is presented on the accrual basis of accounting, which is in accordance with the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Expenditures for federal awards are determined using the cost principles set forth in the Uniform Guidance. Under these cost principles, certain types of expenditures are not allowable or are limited to reimbursement. The accompanying Schedule includes the federal grant transactions of the Institute and includes Federal Awards made to the following corporate entities: Kennedy Krieger Children's Hospital, Inc., Hugo W. Moser Research Institute at Kennedy Krieger, Inc., Kennedy Krieger Education &Community Services, Inc. and PACT: Helping Children with Special Needs, Inc. under programs of the federal government for the year ended June 30, 2022. These corporate entities are denoted on the Schedule as follows: Total Federal Expenditures Passed to Subrecipients R $26,872,477 $3,463,415 C 4,531,273 - P 1,441,431 - H 6,968,960 - R Hugo W. Moser Research Institute at Kennedy Krieger, Inc. H Kennedy Krieger Childrens Hospital, Inc. C Kennedy Krieger Education & Community Services, Inc. P PACT: Helping Children with Special Needs, Inc. Because the Schedule presents only a selected portion of the operations of the Institute, it is not intended to and does not present the financial position, results of operations and non-operating activity, or cash flows of the Institute. Negative amounts reflect adjustments made to expenditures reported in prior years in the normal course of business. For purposes of the Schedule, federal awards include all awards in the form of grants, contracts, and similar agreements entered into directly between the Institute and agencies and departments of the federal government, or non-federal pass-through entities. Federal Assistance Listing Numbers and pass-through identification numbers are included when available. De Minimis Rate Used: Y Rate Explanation: The Schedule reflects federal award program expenditures recognized on the accrual basis ofaccounting in accordance with accounting principles generally accepted in the United States ofAmerica. The Institute has not elected to use the 10% de minimis rate for indirect costs. Indirect costsare billed based upon negotiated and budgeted rates. The Schedule includes grant activity related to the Department of Health and Human Services(HHS) Provider Relief Fund and American Rescue Plan (ARP) Distribution Assistance Listing Number 93.498. As required based on guidance in the 2022 OMB Compliance Supplement, the Schedule includes all Period 2 funds received between July 1, 2020 to December 31, 2020 and expended by December 31, 2021 as reported to HRSA via the PRF Reporting Portal. The Schedule thus includes $1,560,903 of direct expenditures and $3,497,424 in lost revenue. Lost revenue does not represent an expenditure in the Institutes financial statements and thus is a reconciling item between the federal expenses in the financial statements and the amount included on the Schedule.