Audit 319454

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 the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: GRANTS ONLY ALLOWED A 6% INDIRECT RATE The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant award activity of Cornerstone Franciscan Ministries Inc. under programs of the federal government for the year ended December 31, 2023. The information in this Schedule 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 (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Cornerstone Franciscan Ministries Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Cornerstone Franciscan Ministries Inc.

Title: BASIS OF PRESENTATION(CONTINUED) 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 the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: GRANTS ONLY ALLOWED A 6% INDIRECT RATE Pass-Through entity identifying numbers are presented when available.