Audit 79151

Title: Note A--Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Suchexpenditures are recognized following the cost principles contained in Uniform Guidance and/or OMBCircular A-122 Cost Principles for Non-profit Organizations, wherein certain types of expenditures are notallowable or are limited as to reimbursement De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federalaward activity of Seven Counties Services, Inc. (Seven Counties). The information in this Schedule ispresented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards(Uniform Guidance). Because the Schedule presents only a selected portion of the operations of SevenCounties, it is not intended to and does not present the financial position, changes in net assets, or cashflows of Seven Counties.We have audited the consolidated financial statements of Seven Counties Services, Inc. and itssubsidiary (the Corporation) as of and for the year ended June 30, 2022. The Corporation consists oftwo entities, discussed in Note A to the consolidated financial statements. Our audit of compliance, onpages 28 through 30, only includes the federal grant activity of Seven Counties Services, Inc. becausethe subsidiary did not receive or expend federal awards in excess of reporting thresholds.

Title: Note D--Unreported Federal Awards Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Suchexpenditures are recognized following the cost principles contained in Uniform Guidance and/or OMBCircular A-122 Cost Principles for Non-profit Organizations, wherein certain types of expenditures are notallowable or are limited as to reimbursement De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. During the fiscal year ended June 30, 2022, Seven Counties received $572,391 in funds from theProvider Relief Fund (Assistance listing # 93.498), which has been excluded from the Schedule inaccordance with guidance provided in the OMBs 2022 Compliance Supplement published in April 2022.