Audit 321517

Title: FINANCIAL STATEMENT REVENUE Accounting Policies: The accompanying schedule of expenditures of federal awards (SEFA) includes the federal award activity of The Carmelite System, Inc. under programs of the federal government for the year ended December 31, 2023. The information in this SEFA is presented in accordance with the requirements of 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). As the SEFA presents only a selected portion of the operations of The Carmelite System, Inc., it is not intended to, and does not, present the consolidated financial position, changes in net assets, or cash flows of The Carmelite System, Inc. Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-122, Cost Principles for Non-Profit Organizations, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Carmelite System, Inc. has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Carmelite System, Inc. has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The consolidated financial statements reflect revenue recognized from the Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural distribution of $-0- for the year ended December 31, 2023. The SEFA includes $522,921 from the PRF which was received in reporting period 6 and $500 from the ARP which was received in reporting period 6 in accordance with the requirements of the compliance supplement for assistance listing number 93.498.