Audit 352513

Title: NOTE A – BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the Schedule are reported on the cash basis of accounting in accordance with accounting principles generally accepted in the United States of America (GAAP). Such expenditures are recognized following the cost principles contained in 2 CFR Section 200.502 wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Shelter used an indirect cost rate of 10%. The accompanying Schedule of Expenditures of Federal and State Awards (the Schedule) includes the federal and state grant activity of The Children’s Shelter (the “Shelter”) under programs of the federal and state government for the year ended June 30, 2024. The information in the Schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Costs Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and the Texas Grant Management Standards (TxGMS). Because the Schedule presents only a selected portion of the operations of the Shelter, it is not intended to, and does not, present the financial position, changes in net assets, or cash flows of the Shelter. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. All of the Shelter’s federal and state awards were in the form of cash assistance. The Shelter had no federal or state funded insurance programs or loan guarantees during the year ended June 30, 2024.

Title: NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Expenditures reported on the Schedule are reported on the cash basis of accounting in accordance with accounting principles generally accepted in the United States of America (GAAP). Such expenditures are recognized following the cost principles contained in 2 CFR Section 200.502 wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Shelter used an indirect cost rate of 10%. Expenditures reported on the Schedule are reported on the cash basis of accounting in accordance with accounting principles generally accepted in the United States of America (GAAP). Such expenditures are recognized following the cost principles contained in 2 CFR Section 200.502 wherein certain types of expenditures are not allowable or are limited as to reimbursement.

Title: NOTE C – INDIRECT COST RATE Accounting Policies: Expenditures reported on the Schedule are reported on the cash basis of accounting in accordance with accounting principles generally accepted in the United States of America (GAAP). Such expenditures are recognized following the cost principles contained in 2 CFR Section 200.502 wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Shelter used an indirect cost rate of 10%. The Shelter used an indirect cost rate of 10%.

Title: NOTE D – RECONCILIATION TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS Accounting Policies: Expenditures reported on the Schedule are reported on the cash basis of accounting in accordance with accounting principles generally accepted in the United States of America (GAAP). Such expenditures are recognized following the cost principles contained in 2 CFR Section 200.502 wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Shelter used an indirect cost rate of 10%. See chart on Report.