Audit 341973

Title: NOTE 3: MEDICAID Accounting Policies: The accompanying Schedule of Expenditures of Federal and State Awards (the schedule) includes the federal  and  state  grant  activity  of  both  Harbor  House,  Inc.  of  Fort  Smith,  Arkansas  and  the  entity  previously known as Gateway House, Inc. (collectively, the Organization) under programs of the federal and state governments 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) and Arkansas Department of Human Services. Because the schedule presents only  a  selected  portion  of  the  operations  of  the  Organization,  it  is  not  intended  to  and  does  not  present the financial position, changes in net assets, or cash flows of the Organization. De Minimis Rate Used: N Rate Explanation: 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. The Organization has  elected  not  to  use  the  10‐percent  de  minimis  indirect  cost  rate  allowed  under  the  Uniform  Guidance. Medical Assistance Program revenues amounts to $12,824 during the year ended June 30, 2024.