Audit 318712

Accounting Policies: The accompanying schedule of expenditures of federal awards presents the activity of federal award programs of Development Centers, Inc. (“DCI”). Federal awards received directly from federal agencies, as well as federal awards passed through other agencies, are included on this schedule. Basis of Presentation The information in the accompanying schedule of expenditures of federal awards is presented 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 (the “Uniform Guidance”). Because this schedule presents only a selected portion of DCI’s operations, it is not intended to, and does not, present the financial position, changes in net assets, or cash flows of DCI. Basis of Accounting The accompanying schedule of expenditures of federal awards is presented using the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, in which certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimus cost rate.