Audit 348214

Title: NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Basis of Accounting: 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The Corporation has elected to not use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Corporation has elected to not use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Basis of Presentation: The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of the Corporation 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 for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Corporation, it is not intended to and does not present the financial position, statements of activities, functional expenses, or cash flows of the corporation. Basis of Accounting: 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The Corporation has elected to not use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Subrecipients: Of the federal expenditures presented in the schedule, Illinois Action for Children provided the following federal awards to subrecipients: IDHS – Child Care and Development Fund Cluster AL# 93.596 Carole Robertson Center $ 203,280 Centers for New Horizon 187,602 Good Shepherd Center 663,300 Total Subrecipient payments $ 1,054,182 Head Start AL# 93.600 A Step Up Career Academy $ 91,338 Calumet City’s Kids Academy 29,157 First Step Child Care Center 30,962 Total Subrecipient payments $ 151,457 Loans and Loan Guarantees: There were no federal loans outstanding for the year ended June 30, 2024. Insurance: Illinois Action for Children has no federal insurance for the year ended June 30, 2024.