Audit 361999

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. The amounts reported in this schedule as expenditures may differ from financial reports submitted to funding agencies due to those reports being submitted on either a cash or modified accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: ChildFirst Services, Inc. has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal, state and city/county awards includes the federal state, city and/county grant activity of ChildFirst Services, Inc. and is presented on the accrual basis of accounting, which is the same basis used in the financial statements. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and the City of Philadelphia Subrecipient Audit Guide.

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. The amounts reported in this schedule as expenditures may differ from financial reports submitted to funding agencies due to those reports being submitted on either a cash or modified accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: ChildFirst Services, Inc. has elected not to use the 10% de minimis indirect cost rate 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. The amounts reported in this schedule as expenditures may differ from financial reports submitted to funding agencies due to those reports being submitted on either a cash or modified accrual basis of accounting.

Title: NOTE 3. INDIRECT COST RATE 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. The amounts reported in this schedule as expenditures may differ from financial reports submitted to funding agencies due to those reports being submitted on either a cash or modified accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: ChildFirst Services, Inc. has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. ChildFirst Services, Inc. has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.

Title: NOTE 4. PASS-THROUGH AWARDS TO SUBRECIPIENTS 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. The amounts reported in this schedule as expenditures may differ from financial reports submitted to funding agencies due to those reports being submitted on either a cash or modified accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: ChildFirst Services, Inc. has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. There were no awards passed through to subrecipients by ChildFirst Services, Inc. for the year ended June 30, 2023.

Title: NOTE 5. RELATIONSHIP TO BASIC FINANCIAL STATEMENTS 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. The amounts reported in this schedule as expenditures may differ from financial reports submitted to funding agencies due to those reports being submitted on either a cash or modified accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: ChildFirst Services, Inc. has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Federal, state and city awards expenditures are reported on the statement of functional expenses as program services. In certain programs, the expenditures reported in the basic financial statements may differ from the expenditures reported in the schedule of federal, state and city awards due to the program expenditures exceeding grant or contract budget limitations which are not included as federal, state and city awards.