Audit 340563

Title: Basis of Presentation Accounting Policies: 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 and the Circular, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedules of expenditures of federal awards and state financial assistance (the "Schedules") include the federal and state grant activity of Courage Medicine Health Center, Inc. (the “Organization”) under programs of the federal government for the year ended June 30, 2024. The information in these Schedules 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 Schedules present only a selected portion of the operations of the Organization, they are not intended to and do not present the financial position, change in net assets or cash flows of the Organization.

Title: Reconciliation of Government Grants to Schedules Accounting Policies: 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 and the Circular, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The Organization has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Government grants revenue per audit $ Expenses per Schedules Federal expenditures State expenditures Total expenses per Schedules Variance $ 1,391,678 891,678 500,000 1,391,678 -