Audit 335079

Title: Note 1 – 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. Sunnyvale Community Services has elected not to use the ten percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Sunnyvale Community Services has elected not to use the ten percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Sunnyvale Community Services under programs of the federal government for the year ended June 30, 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 Sunnyvale Community Services, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Sunnyvale Community Services. Federal expenditures of $4,629,844 are presented in Sunnyvale Community Services’ financial statements under their functional categories.

Title: Note 3 – Subrecipients 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. Sunnyvale Community Services has elected not to use the ten percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Sunnyvale Community Services has elected not to use the ten percent de minimis indirect cost rate allowed under the Uniform Guidance. Certain funds are passed through to subrecipient organizations by Sunnyvale Community Services. Expenditures incurred by the subrecipients and reimbursed by Sunnyvale Community Services are included in the Schedule. Sunnyvale Community Services is also the subrecipient of federal funds, which are reported as expenditures and listed separately as federal pass-through funds.

Title: Note 4 – Loan Outstanding Balance 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. Sunnyvale Community Services has elected not to use the ten percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Sunnyvale Community Services has elected not to use the ten percent de minimis indirect cost rate allowed under the Uniform Guidance. The balance outstanding on the Community Development Block Grant (CDBG) loan with the City of Sunnyvale at June 30, 2024, was $900,000.