Audit 42080

Title: Reconciliation to Financial Statement Accounting Policies: The schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of Ability Connection Colorado, Inc. and Subsidiaries under programs of the federal government for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements of 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). The subsidiaries of Ability Connection Colorado, Inc. did not receive or expend federal funds and, accordingly, the Schedule presents only a selected portion of the operations of Ability Connection Colorado, Inc. It is not intended to and does not present the financial position, change in net assets, or cash flows of Ability Connection Colorado, Inc. and Subsidiaries. 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. Ability Connection Colorado, Inc. has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Ability Connection Colorado, Inc. and Subsidiaries did not pass funds through to subrecipients for the year ended June 30, 2022. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Ability Connection Colorado, Inc. and Subsidiaries receives grants from other sources in addition to its federal awards. The following analysis reconciles expenditures in the accompanying schedule to grant revenue reflected in Ability Connection Colorado, Inc. and Subsidiaries' consolidated financial statements for the year ended June 30, 2022: Revenue from Governmental Agencies, Federal revenue subject to Single Audit, Child Care and Development Block Grant: $5,455,878, ARP Stabilization Funds: $333,339, Other grant revenue (3 grants): $119,707 - Total: $5,908,924