Audit 338686

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. De Minimis Rate Used: N Rate Explanation: Child Development Center, Inc. has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of the Child Development Center, Inc. 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 of Federal Awards (Uniform Guidance). Because the Schedule presents only a selection portion of the operations of the Child Development Center, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Child Development Center, 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. De Minimis Rate Used: N Rate Explanation: Child Development Center, Inc. has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. 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.

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. De Minimis Rate Used: N Rate Explanation: Child Development Center, Inc. has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Child Development Center, Inc. has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.

Title: PROGRAM DESCRIPTIONS 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. De Minimis Rate Used: N Rate Explanation: Child Development Center, Inc. has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Child Development Center, Inc. is a nonprofit corporation providing early intervention services for children who are “at risk” for a developmental delay or who have been diagnosed as having a developmental disability or delay. Child Development Center, Inc. operates in a seven-county region of western Montana and receives the majority of its funding under various fee-for-service contracts with the Montana Department of Public Health and Human Services. Significant portions of these contracts are federally funded by the U.S. Various financial reports are filed with the funding agencies described above using forms prescribed by these agencies. The Montana Department of Public Health and Human Services determines eligibility for participation in the Medicaid Waiver Program and Special Education Programs. Department of Health and Human Services and the U.S. Department of Education under the Medicaid (Title XIX) Waiver Program (Assistance Listing 93.778), the Social Services Block Grant Program (Assistance Listing 93.667), and the Special Education – Grants for Infants and Families with Disabilities Program (Assistance Listing 84.181).