Audit 355675

Title: Basis of Accounting Accounting Policies: 1. Basis of Accounting The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of SeniorCare Network, Inc. (the Corporation) and is prepared using the accrual basis of accounting. 2. Relationship to Basic Financial Statements The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principle and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. 3. Indirect Costs The Corporation has not elected to use the 10% de-minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Corporation has not elected to use the 10% de-minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of SeniorCare Network, Inc. (the Corporation) and is prepared using the accrual basis of accounting.

Title: Relationship to Basic Financial Statements Accounting Policies: 1. Basis of Accounting The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of SeniorCare Network, Inc. (the Corporation) and is prepared using the accrual basis of accounting. 2. Relationship to Basic Financial Statements The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principle and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. 3. Indirect Costs The Corporation has not elected to use the 10% de-minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Corporation has not elected to use the 10% de-minimis indirect cost rate as allowed under the Uniform Guidance. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principle and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.

Title: Indirect Costs Accounting Policies: 1. Basis of Accounting The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of SeniorCare Network, Inc. (the Corporation) and is prepared using the accrual basis of accounting. 2. Relationship to Basic Financial Statements The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principle and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. 3. Indirect Costs The Corporation has not elected to use the 10% de-minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Corporation has not elected to use the 10% de-minimis indirect cost rate as allowed under the Uniform Guidance. The Corporation has not elected to use the 10% de-minimis indirect cost rate as allowed under the Uniform Guidance.