Audit 342552

Title: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES FOR FEDERAL AWARD EXPENDITURES Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) summarizes the federal award expenditures disbursed by Keys 2 Work, Inc. received from the federal government for the year ended June 30, 2024. For the purpose of the Schedule, federal awards include pass-through funds from grants and contracts entered into directly between Keys 2 Work, Inc. and state or local agencies, departments of the federal government, and other organizations. De Minimis Rate Used: Y Rate Explanation: Workforce, Inc. d/b/a RecycleForce has elected to use the ten-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. Expenditures consist of direct and indirect costs. Direct costs are those that can be readily identified with an individual federally sponsored program. Benefit payments made on behalf of an eligible recipient and the materials consumed by the program are examples of direct costs.

Title: MANAGEMENT’S USE OF ESTIMATES Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) summarizes the federal award expenditures disbursed by Keys 2 Work, Inc. received from the federal government for the year ended June 30, 2024. For the purpose of the Schedule, federal awards include pass-through funds from grants and contracts entered into directly between Keys 2 Work, Inc. and state or local agencies, departments of the federal government, and other organizations. De Minimis Rate Used: Y Rate Explanation: Workforce, Inc. d/b/a RecycleForce has elected to use the ten-percent de-minimis indirect cost rate allowed under the Uniform Guidance. The preparation of the Schedule of Expenditures of Federal Awards requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, disclosure of contingent assets and liabilities, and the reported amounts of revenues and expenses. Actual results could differ from those estimates.