Audit 363588

Title: Basis of Presentation Accounting Policies: Prepared in accordance with the provisions of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”). De Minimis Rate Used: N Rate Explanation: COA does not have an established overhead rate and does not include overhead in grant proposals. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of the Children’s Hospital of Alabama and Subsidiaries (the “Company”) under programs of the federal government for the year ended December 31, 2024, and is presented on the cash basis of accounting. The information in the Schedule is presented in accordance with the provisions 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 consolidated financial statements. The purpose of the Schedule of Expenditures of Federal Awards is to present a summary of the activities of the Company for the year ended December 31, 2024, which have been financed by the United States government. The regulations and guidelines governing the preparation of federal financial reports vary by federal agency and among programs administered by the same agency. Accordingly, the amounts reported in the federal financial reports may not necessarily agree with the amounts reported in the accompanying Schedule of Expenditures of Federal Awards. In addition, the Company has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Because the Schedule presents only a selected portion of the operations of the Company, it is not intended to, and does not, present the financial position, changes in net assets, or cash flows of the Company. The Company did not pass through funds to subrecipients during the year ended December 31, 2024.

Title: Contingencies Accounting Policies: Prepared in accordance with the provisions of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”). De Minimis Rate Used: N Rate Explanation: COA does not have an established overhead rate and does not include overhead in grant proposals. These programs are subject to financial and compliance audits by grantor agencies. The amount, if any, of expenditures that may be disallowed by the grantor agencies cannot be determined at this time, although Company management expects such amounts, if any, to be immaterial.