Audit 361749

Accounting Policies: General The accompanying Schedule of Expenditures of Federal Awards (the Schedule) presents the activity of all federal awards programs of Health Research, Inc. (the Corporation) for the year ended March 31, 2025. Federal awards received directly from federal agencies, as well as federal awards passed through other government agencies, are included in the Schedule. 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). Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the financial statements. Basis of Accounting The accompanying Schedule is presented using the cash basis of accounting used by the Corporation to report to the federal government. Relationship to Financial Statements The amounts reported as federal expenditures generally were obtained from the appropriate financial records for the applicable program and period. The amounts reported in federal financial reports are prepared from these financial records, which are maintained for each program. These records are periodically reconciled to the general ledger which is the source of the financial statements. The Corporation’s financial statements are presented in accordance with generally accepted accounting principles. De Minimis Rate Used: N Rate Explanation: The Corporation has agreed upon indirect cost rates with the Department of Health and Human Services through March 31, 2026, ranging from 16.80% - 73.50%. The Corporation has elected not to use the 10% de-minimis indirect cost rate allowed under Uniform Guidance.