Audit 331751

Title: SUBRECIPIENTS Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards and Schedule of Expenditures of State Awards (the “Schedules”) include the federal and state grant activity, respectively, of the Agency and are presented on the accrual basis of accounting. The information in the 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 (“Uniform Guidance”). The information in the Schedule of Expenditures of State Awards is presented in accordance with the requirements of the State of Tennessee Audit Manual. Because the Schedules present only a selected portion of the operations of the Organization, it is not intended to and does not present the consolidated financial position, changes in net assets or cash flows of the Organization. Expenditures reported on the Schedules 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 has elected not to use the 10% de minimis indirect cost rate allowed under Uniform Guidance. The Organization did not expend any federal or state awards during fiscal year 2024 in the form of noncash assistance. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10% de minimis indirect cost rate allowed under Uniform Guidance. The Organization did not have any expenditures to subrecipients during the fiscal year.

Title: CONTINGENCIES Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards and Schedule of Expenditures of State Awards (the “Schedules”) include the federal and state grant activity, respectively, of the Agency and are presented on the accrual basis of accounting. The information in the 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 (“Uniform Guidance”). The information in the Schedule of Expenditures of State Awards is presented in accordance with the requirements of the State of Tennessee Audit Manual. Because the Schedules present only a selected portion of the operations of the Organization, it is not intended to and does not present the consolidated financial position, changes in net assets or cash flows of the Organization. Expenditures reported on the Schedules 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 has elected not to use the 10% de minimis indirect cost rate allowed under Uniform Guidance. The Organization did not expend any federal or state awards during fiscal year 2024 in the form of noncash assistance. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10% de minimis indirect cost rate allowed under Uniform Guidance. These programs are subject to financial and compliance audits by the grantor agencies. The amount, if any, of expenditures that may be disallowed by the grantor agencies cannot be determined at this time, although the Organization expects such amounts, if any, to be immaterial.