Audit 340717

Title: NOTE 1 – BASIS OF PRESENTATION Accounting Policies: SEE NEXT TAB De Minimis Rate Used: N Rate Explanation: The Association has elected not use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. Expenditures include costs that can be directly identified to a program plus allocations of applicable indirect costs. The indirect costs applied are negotiated percentages of direct expenses. Indirect costs applied to awards for the year ended June 30, 2024 were negotiated with the State of Maine Department of Health and Human Services, the pass-through entity for the Association’s Department agreements. The accompanying schedule of expenditures of federal awards includes the federal grant activity of Family Planning Association of Maine, Inc. d/b/a Maine Family Planning and 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). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. The Association’s federal awards are received either directly from the federal government or indirectly through “pass-through” organizations.

Title: NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: SEE NEXT TAB De Minimis Rate Used: N Rate Explanation: The Association has elected not use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. Expenditures include costs that can be directly identified to a program plus allocations of applicable indirect costs. The indirect costs applied are negotiated percentages of direct expenses. Indirect costs applied to awards for the year ended June 30, 2024 were negotiated with the State of Maine Department of Health and Human Services, the pass-through entity for the Association’s Department agreements. The accompanying schedule of expenditures of federal awards was prepared using the accrual method of accounting. Expenses are recognized as incurred using the cost accounting principles contained in the Uniform Guidance. Under those cost principles, certain types of expenses are not allowable or are limited as to reimbursement.