Audit 314404

Accounting Policies: Reporting Entity:The Schedule of Expenditures of Federal and State Awards (the Schedule) include the activity of all federal and state award programs administered by Methodist Home for Children, Inc. (the Home ) for the fiscal year ended June 30, 2022.Basis of Presentation:The Schedule presents total federal and state awards expended for the Home 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 (Uniform Guidance). Federal and state award program titles are reported as presented in the Assistance Listing Number, formerly referred to as the Catalog of Federal Domestic Assistance (CFDA). The Schedule presents only a selected portion of the operations of the Home and is not intended to and does not present the financial position, changes in net assets or cash flows of the Home. Therefore, some amounts presented in the Schedule may differ from amounts presented in the Homes financial statements.Basis of Accounting:The expenditures for each of the federal and state award programs are presented in the Schedule on an accrual basis. The accrual basis of accounting incorporates an estimation approach to determine the amount of expenditures incurred if not yet billed by a vendor. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.