Audit 349871

Title: Note A - Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, Cost principles for Non-Profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: 21.4 The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the Federal grant activity of the Gang Alternative, Inc., under programs of the Federal Government for the year ended December 31, 2024. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, Audits of States, Local Governments, and Non-Profit Organizations. Because this schedule presents only a selected portion of the operation of the Gang Alternative, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Gang Alternative, Inc.

Title: Note B - Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, Cost principles for Non-Profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: 21.4 Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, Cost principles for Non-Profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Direct and Indirect Expenditures — Expenditures presented in the schedule consist of direct and indirect costs. Direct costs are those that can be easily attributed to a federal award. Indirect costs cannot be easily attributed to a federal award and relate to the cost of services and resources that benefit federal awards as well as non-federal activities of the Organization. The organization has a policy that allows for the allocation of indirect costs such as salaries, employee benefits, occupancy, and other miscellaneous organizational costs relating to federal grants. The organization has elected not to use the de minimis indirect cost rate as allowed under the Uniform Guidance and instead has opted for the Negotiated Indirect Cost Rate Agreement (NICRA). NICRA is a negotiated agreement between the Federal government and a grantee organization to publish the reimbursement rate(s) which reflects the indirect costs and fringe benefit expenses incurred by the organization in the conduct of federal programs. Gang Alternative, Inc. currently receives a pre-negotiated NICRA rate of 21.40 % which represents the percentage of overhead allowed to be charged against total U.S. Government project direct implementation costs.

Title: Note C- Noncash Assistance and Federal Insurance Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, Cost principles for Non-Profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: 21.4 The organization did not receive any noncash federal awards, federal insurance, or loans or guarantees during the year ended December 31, 2024.