Audit 321002

Title: Basis of Presentation Accounting Policies: (1) 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: Horizon Health Services, Inc. did not elect to use the 10-percent de minimis indirect cost rate allowed under Uniform Guidance. The acompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Horizon Health Services, Inc. under programs of the federal government for the year ended March 31, 2024. 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 Horizon Health Services, Inc., it is not intended to and does not present the finanical position, changes in net assets, or cash flows of Horizon Health Services, Inc.

Title: Subrecipients Accounting Policies: (1) 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: Horizon Health Services, Inc. did not elect to use the 10-percent de minimis indirect cost rate allowed under Uniform Guidance. No awards were passed through to subrecipients.