Audit 42517

Accounting Policies: 1.BASIS OF PRESENTATIONThe accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of HPM Foundation, Inc. (HPM). The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of federal Regulations Part 200 (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of HPM, it is not intended to and does not present the financial positions, changes in net assets or cash flows of HPM.2.SUMMARY OF SIGNIFICANT ACCOUNTINGA.Expenditures reported in the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Subpart E of Title 2 U.S. Code of Federal Regulation Part 200, wherein certain types of expenditures are not allowable or are limited as to reimbursement.B.Pass-through entity identifying numbers are presented where available and applicable.C.HPM has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.3.SCHEDULE NOT IN AGREEMENT WITH OTHER FEDERAL AWARD REPORTINGThe information included in the Schedule may not fully agree with other federal award reports submitted directly to federal granting agencies.4.FEDERAL CFDA NUMBERThe CFDA numbers included in this Schedule are determined based on the program name, review of grant contract information and the Office of Management and Budgets Catalogue of Federal Domestic Assistance.5.PASS-TROUGHNo federal grant dollar has been passed-through to sub-recipient 6.RELATIONSHIPS FROM SCHEDULE TO STATEMENT OF OPERATIONS AND CHANGES IN NET ASSETSRevenues and expenses of the Federal Awards programs are included in HPMs financial statements. The reconciliation between the expenses in the financial statements and expenditures in the Schedule of Expenditures of Federal Awards is as follows:Expenses in the financial statements$ 52,825,870Add: Capital expenses in connection with net assets with donor restrictions58,450Less: Inventory decrease in connection with net assets with donor restrictions (98,984)Less: Non-federal expenses(44,999,035)Total Federal Expenditures$ 7,786,301 De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.