Audit 316015

Title: Basis of Presentation 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 Uniform Guidance and the Guidelines, 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. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal and state awards (the Schedule) includes the federal and state award activity of Penfield Children's Center, Inc. (Penfield) under programs of the federal and state government for the year ended December 31, 2023. The information in this Schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and the State Single Audit Guidelines (Guidelines). Because the Schedule presents only a selected portion of the operations of Penfield, it is not intended to and does not present the financial position, changes in net assets or cash flows of Penfield. Management reviews the expenditures of federal and state awards for each entity that comprise the Organization and determines if a separate audit is required under the Uniform Guidance and the Guidelines. Expenditures for the following consolidated subsidiaries of Penfield, are not included to meet the requirements of the Uniform Guidance and the Guidelines because they have separate audits under the Uniform Guidance and the Guidelines or do not require an audit under the Uniform Guidance and the Guidelines: Friends of Penfield Children's Center, Inc.; VMMS Building Corp.; PCC Building, LLC; Penfield Montessori Academy, Inc.; and PMA Building, LLC.

Title: Noncash Awards 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 Uniform Guidance and the Guidelines, 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. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The Organization did not receive any noncash federal awards.