Audit 44674

Accounting Policies: 1.BASIS OF PRESENTATIONThe accompanying schedule of expenditures of federal awards (the Schedule) summarizes expenditures charged to federally funded grants and service contracts administered by the Corporation for the year ended August 31, 2022. The Schedule should be read in conjunction with the consolidated financial statements of the Corporation.For purposes of the Schedule, federal awards include all grants, service contracts, and similar agreements entered into directly between the Corporation and agencies and departments of the federal government. Also included in the Schedule are all federal awards passed through to the Corporation by other governmental entities and notforprofit organizations pursuant to federal grants, contracts, and similar agreements. Expenditures of government grant and service contract funds are to be used for the purposes specified by the funding source, in accordance with 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).The Schedule is prepared on the cash basis of accounting.2.PROGRAM EXPENSESExpenditures consist of direct and indirect costs. Direct costs are those that can be easily identified with an individual federally sponsored project. The salary of a principal investigator of a sponsored research project and the materials consumed by the project are examples of direct costs.Unlike direct costs, indirect costs cannot easily be identified with an individual federally sponsored project. Indirect costs are the costs of services and resources that benefit many sponsored projects as well as nonsponsored projects and activities. Indirect costs consist of expenses incurred for such items as administration, housekeeping, maintenance, and employee health and welfare.The Corporation and federal agencies use an indirect cost rate to charge indirect costs to individual federally sponsored projects. The rate is the result of a number of cost allocation procedures that the Corporation uses to allocate its indirect costs to both sponsored and nonsponsored activities. The costs allocated to sponsored projects are divided by the direct costs of sponsored projects to arrive at a rate. The Department of Health and Human Services (DHHS) must approve the rate before the Corporation can use it to charge indirect costs to federally sponsored projects. The Corporation did not elect to use the de minimus indirect cost rate as allowed under Uniform Guidance.During the year ended August 31, 2022, the Corporation charged indirect costs using predetermined DHHS approved rates. Indirect cost charges to federal awards for the year ended August 31, 2022 totaled $4,403,973. No federal awards were expended in the form of noncash awards, insurance, or loans/guarantees.3.CONTINGENCIESAll federal and passthrough awards are subject to review and audit by the grantor agencies. Such audits could lead to requests for reimbursement by the grantor agencies for costs disallowed under the terms of the awards. It is the opinion of management that all costs charged against federal awards are allowable under the regulations for such programs.4.COVID19 PROVIDER RELIEF FUNDSThe COVID19 Provider Relief Funds included in the Schedule were received by the following entities (legal name and tax identification number (TIN)): Rehabilitation Institute of Chicago dba Shirley Ryan AbilityLab (TIN: 362256036). De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.