Audit 323556

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. The Organization's significant accounting policies are presented in Note B in the Organization's basic consolidated financial statements. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The Organization bills actual indirect costs up to but not exceeding the total budgeted costs within the grant agreements. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Bay Area Community Services, Inc. under programs of the federal government for the year ended June 30, 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). The Organization received federal awards that were passed through various governmental agencies, which are included on the Schedule of Federal Awards. Because the Schedule presents only a selected portion of the operations of Bay Area Community Services, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Bay Area Community Services, Inc.

Title: Summary of Significant Accounting Policies 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. The Organization's significant accounting policies are presented in Note B in the Organization's basic consolidated financial statements. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The Organization bills actual indirect costs up to but not exceeding the total budgeted costs within the grant agreements. 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. The Organization's significant accounting policies are presented in Note B in the Organization's basic consolidated financial statements. Pass-through entity identifying numbers are presented where available.

Title: Indirect Cost Rate 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. The Organization's significant accounting policies are presented in Note B in the Organization's basic consolidated financial statements. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The Organization bills actual indirect costs up to but not exceeding the total budgeted costs within the grant agreements. Bay Area Community Services, Inc. has elected not to use the 10-percent de minims indirect cost rate allowed under the Uniform Guidance.

Title: Section 8 Direct Loan Program 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. The Organization's significant accounting policies are presented in Note B in the Organization's basic consolidated financial statements. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The Organization bills actual indirect costs up to but not exceeding the total budgeted costs within the grant agreements. Bay Area Community Services, Inc. has received a direct loan under the Section 8 Direct Loan Program program. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. The balance of the loan outstanding as of June 30, 2023, is $82,639.