Audit 365497

Title: 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. Concern Worldwide (U.S.) Inc. has elected not to use 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: USAID has established provisional rates for charging general and administrative costs under the various agreements. Certain costs included in programmatic and fundraising expenses for financial reporting purposes have been reclassified to the general and administrative expenses as these costs benefit all programs and are allocated based upon the calculation of the indirect rates. Concern Worldwide (U.S.) charges the general and administrative rate to awards it manages directly, and it charges the sub-award rate to the awards it provides to sub-recipients. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Concern Worldwide (U.S.), Inc. (“Concern Worldwide”) under programs of the federal government for the year ended December 31, 2024. 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, Costs Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Concern Worldwide, it is not intended and does not present the financial position, changes in net assets, or cash flows of Concern Worldwide. Amounts provided to sub-recipients shown separately on the Schedule are also a component of the federal expenditures presented. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.

Title: 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. Concern Worldwide (U.S.) Inc. has elected not to use 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: USAID has established provisional rates for charging general and administrative costs under the various agreements. Certain costs included in programmatic and fundraising expenses for financial reporting purposes have been reclassified to the general and administrative expenses as these costs benefit all programs and are allocated based upon the calculation of the indirect rates. Concern Worldwide (U.S.) charges the general and administrative rate to awards it manages directly, and it charges the sub-award rate to the awards it provides to sub-recipients. 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.

Title: 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. Concern Worldwide (U.S.) Inc. has elected not to use 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: USAID has established provisional rates for charging general and administrative costs under the various agreements. Certain costs included in programmatic and fundraising expenses for financial reporting purposes have been reclassified to the general and administrative expenses as these costs benefit all programs and are allocated based upon the calculation of the indirect rates. Concern Worldwide (U.S.) charges the general and administrative rate to awards it manages directly, and it charges the sub-award rate to the awards it provides to sub-recipients. The accompanying indirect rate calculation is prepared in accordance with the Uniform Guidance and additional regulations issued by the United States Agency for International Development (USAID). Concern Worldwide (U.S.) Inc. has elected not to use 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.