Audit 361167

Title: Note 2. 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 the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass through entity identifying numbers are presented where available. Clay Behavioral Health Center, Inc. has elected not to use the 10 percent de minimus indirect cost rate as allowed under Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Clay Behavioral Health Center, Inc. has elected not to use the 10 percent de minimus indirect cost rate as allowed under Uniform Guidance. a) 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. b) Pass through entity identifying numbers are presented where available. c) Clay Behavioral Health Center, Inc. has elected not to use the 10 percent de minimus indirect cost rate as allowed under Uniform Guidance.

Title: Note 1. 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 the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass through entity identifying numbers are presented where available. Clay Behavioral Health Center, Inc. has elected not to use the 10 percent de minimus indirect cost rate as allowed under Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Clay Behavioral Health Center, Inc. has elected not to use the 10 percent de minimus indirect cost rate as allowed under Uniform Guidance. The accompanying schedule of expenditures of federal awards includes the federal grant activity of Clay Behavioral Health Center, Inc. and is presented on the accrual basis of accounting. 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 Clay Behavioral Health Center, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Clay Behavioral Health Center, Inc.