Audit 354195

Title: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal grant activity of Ten 16 Recovery Network 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 the Title 2 U.S. Code of Federal Regulations (CFR) 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 Ten 16 Recovery Network, it is not intended to and does not present the financial position or changes in net position of Ten 16 Recovery Network. 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 (if any) shown on the Schedule represent adjustments or credit made in the normal course of business to amounts reported as expenditures. The Ten 16 Recovery Network has elected not to use the 10 percent de minimus indirect cost rate to recover costs as allowed under the Uniform Guidance. The Ten 16 Recovery Network does not have any subrecipients. De Minimis Rate Used: N Rate Explanation: ACTUAL AMOUNTS USED The accompanying schedule of expenditures of federal awards (Schedule) includes the federal grant activity of Ten 16 Recovery Network 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 the Title 2 U.S. Code of Federal Regulations (CFR) 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 Ten 16 Recovery Network, it is not intended to and does not present the financial position or changes in net position of Ten 16 Recovery Network. 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 (if any) shown on the Schedule represent adjustments or credit made in the normal course of business to amounts reported as expenditures. The Ten 16 Recovery Network has elected not to use the 10 percent de minimus indirect cost rate to recover costs as allowed under the Uniform Guidance. The Ten 16 Recovery Network does not have any subrecipients.

Title: NOTE 2 - RECONCILIATION OF REVENUE REPORTED IN THE FINANCIAL STATEMENTS Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal grant activity of Ten 16 Recovery Network 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 the Title 2 U.S. Code of Federal Regulations (CFR) 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 Ten 16 Recovery Network, it is not intended to and does not present the financial position or changes in net position of Ten 16 Recovery Network. 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 (if any) shown on the Schedule represent adjustments or credit made in the normal course of business to amounts reported as expenditures. The Ten 16 Recovery Network has elected not to use the 10 percent de minimus indirect cost rate to recover costs as allowed under the Uniform Guidance. The Ten 16 Recovery Network does not have any subrecipients. De Minimis Rate Used: N Rate Explanation: ACTUAL AMOUNTS USED TOTAL FEDERAL EXPENDITURES PER SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS $861,445 ADD: STATE PORTION OF BLOCK GRANT $98,039 ADD NON-FEDERAL CONTRACT REVENUE $3,844,472 REVENUES PER FINANCIAL STATEMENTS - CONTRACT REVENUE $4,803,956