Audit 315918

Title: NOTE 1 - BASIS OF PRESENTATION Accounting Policies: Expenditures reported in 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 reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported in prior years. De Minimis Rate Used: Both Rate Explanation: The Substance Abuse and Prevention Control program uses the 10% de minimis rate. All other federal programs use a negotiated ratet between 10% and 15%. The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal award activity of Tessie Cleveland Community Services Corporation under programs of the federal government for the year ended June 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 Tessie Cleveland Community Services Corporation it is not intended to and does not present the financial position, changes in net assets, or cash flows of Tessie Cleveland Community Services Corporation.

Title: NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Expenditures reported in 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 reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported in prior years. De Minimis Rate Used: Both Rate Explanation: The Substance Abuse and Prevention Control program uses the 10% de minimis rate. All other federal programs use a negotiated ratet between 10% and 15%. Expenditures reported in 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 reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported in prior years.

Title: NOTE 3 - INDIRECT COST RATE Accounting Policies: Expenditures reported in 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 reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported in prior years. De Minimis Rate Used: Both Rate Explanation: The Substance Abuse and Prevention Control program uses the 10% de minimis rate. All other federal programs use a negotiated ratet between 10% and 15%. Tessie Cleveland Community Services Corporation allocates indirect costs to federal programs using the following methods:

Title: NOTE 3 - INDIRECT COST RATE Accounting Policies: Expenditures reported in 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 reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported in prior years. De Minimis Rate Used: Both Rate Explanation: The Substance Abuse and Prevention Control program uses the 10% de minimis rate. All other federal programs use a negotiated ratet between 10% and 15%. Substance Abuse and Prevention Control program-The 10% de minimis rate is used.

Title: NOTE 3 - INDIRECT COST RATE Accounting Policies: Expenditures reported in 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 reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported in prior years. De Minimis Rate Used: Both Rate Explanation: The Substance Abuse and Prevention Control program uses the 10% de minimis rate. All other federal programs use a negotiated ratet between 10% and 15%. For all other federal programs-A negotiated rate between 10% and 15% is used.