Audit 317906

Title: NOTE 1 – BASIS OF PRESENTATION Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activities of Hand in Hand/Mano en Mano and Subsidiary 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 Hand in Hand/Mano en Mano and Subsidiary, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Organization. De Minimis Rate Used: N Rate Explanation: The Organization has elected not use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. Expenditures include costs that can be directly identified to a program plus allocations of applicable indirect costs. The indirect costs applied are negotiated percentages of direct expenses. Indirect costs applied to awards for the year ended December 31, 2023 were negotiated with the State of Maine Department of Health and Human Services, the pass-through entity for the Organization’s Department agreements. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activities of Hand in Hand/Mano en Mano and Subsidiary 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 Hand in Hand/Mano en Mano and Subsidiary, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Organization. The Organization’s federal awards are received either directly from the federal government or indirectly through “pass-through” organizations.

Title: NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activities of Hand in Hand/Mano en Mano and Subsidiary 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 Hand in Hand/Mano en Mano and Subsidiary, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Organization. De Minimis Rate Used: N Rate Explanation: The Organization has elected not use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. Expenditures include costs that can be directly identified to a program plus allocations of applicable indirect costs. The indirect costs applied are negotiated percentages of direct expenses. Indirect costs applied to awards for the year ended December 31, 2023 were negotiated with the State of Maine Department of Health and Human Services, the pass-through entity for the Organization’s Department agreements. The accompanying schedule of expenditures of federal awards was prepared using the accrual method of accounting. Expenses are recognized as incurred using the cost accounting principles contained in the Uniform Guidance. Under those cost principles, certain types of expenses are not allowable or are limited as to reimbursement. The Organization has elected not use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. Expenditures include costs that can be directly identified to a program plus allocations of applicable indirect costs. The indirect costs applied are negotiated percentages of direct expenses. Indirect costs applied to awards for the year ended December 31, 2023 were negotiated with the State of Maine Department of Health and Human Services, the pass-through entity for the Organization’s Department agreements.