Audit 55037

Accounting Policies: The accompanying schedule of expenditures of federal and state awards (the schedule) includes the federalaward activity of the Catalyst Family Inc. (CFI) under programs of the federal government and state awards forthe year ended June 30, 2022. The federal information is presented in accordance with the requirements of Title2 U.S. Code of Federal Regulations, Part 200, Uniform Administrative Requirements, Cost Principles, and AuditRequirements for Federal Awards (Uniform Guidance). The state information is presented in accordance with therequirements of the 2021-22 California Department of Education and California Department of Social ServicesAudit Guide . Because the schedule presents only a selected portion of the operations of CFI, it is not intendedto and does not present the financial position, changes in net assets or cash flows of CFI. Expenditures reported in the schedule are reported on the accrual basis of accounting. When applicable, suchexpenditures are recognized following the cost principles contained in the Uniform Guidance and the 2021-22California Department of Education and California Department of Social Services Audit Guide, wherein certaintypes of expenditures are not allowable or are limited as to reimbursement. No federal financial assistance hasbeen provided to a subrecipient. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. CFI has not elected to use the 10% de minimis cost rate.