Audit 361775

Title: Note 1: General Accounting Policies: Note 1: General The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Hearth Connection under programs of the federal government for the year ended December 31, 2023. The information in this Schedule is presented in accordance with requirements of the 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 Hearth Connection, it is not intended to and does not present the financial position, changes in net assets or cash flows of Hearth Connection. Note 2: Basis of Accounting 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. Note 3: Indirect Costs Hearth Connection has elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: Hearth Connection has elected to use the 10-percent 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 Hearth Connection under programs of the federal government for the year ended December 31, 2023. The information in this Schedule is presented in accordance with requirements of the 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 Hearth Connection, it is not intended to and does not present the financial position, changes in net assets or cash flows of Hearth Connection.

Title: Note 2: Basis of Accounting Accounting Policies: Note 1: General The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Hearth Connection under programs of the federal government for the year ended December 31, 2023. The information in this Schedule is presented in accordance with requirements of the 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 Hearth Connection, it is not intended to and does not present the financial position, changes in net assets or cash flows of Hearth Connection. Note 2: Basis of Accounting 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. Note 3: Indirect Costs Hearth Connection has elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: Hearth Connection has elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. 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.

Title: Note 3: Indirect Costs Accounting Policies: Note 1: General The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Hearth Connection under programs of the federal government for the year ended December 31, 2023. The information in this Schedule is presented in accordance with requirements of the 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 Hearth Connection, it is not intended to and does not present the financial position, changes in net assets or cash flows of Hearth Connection. Note 2: Basis of Accounting 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. Note 3: Indirect Costs Hearth Connection has elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: Hearth Connection has elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Hearth Connection has elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.