Audit 8522

Title: Note 1 - Basis of Presentation Accounting Policies: Expenditures reported in the schedule are reported on the accrual basis of accounting. When applicable, such expenditures are recognized following the cost principles contained in the Uniform Guidance and the 2021-22 California Department of Education and California Department of Social Services Audit Guide, wherein certain types of expenditures are not allowable or are limited as to reimbursement. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: CFI has not elected to use the 10% de minimis cost rate. The accompanying schedule of expenditures of federal and state awards (the schedule) includes the federal award activity of the Catalyst Family Inc. (CFI) under programs of the federal government and state awards for the year ended June 30, 2023. The federal information is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations, Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). The state information is presented in accordance with the requirements of the 2021-22 California Department of Education and California Department of Social Services Audit Guide . Because the schedule presents only a selected portion of the operations of CFI, it is not intended to and does not present the financial position, changes in net assets or cash flows of CFI.

Title: Note 2 - Summary of Significant Accounting Policies Accounting Policies: Expenditures reported in the schedule are reported on the accrual basis of accounting. When applicable, such expenditures are recognized following the cost principles contained in the Uniform Guidance and the 2021-22 California Department of Education and California Department of Social Services Audit Guide, wherein certain types of expenditures are not allowable or are limited as to reimbursement. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: CFI has not elected to use the 10% de minimis cost rate. Expenditures reported in the schedule are reported on the accrual basis of accounting. When applicable, such expenditures are recognized following the cost principles contained in the Uniform Guidance and the 2021-22 California Department of Education and California Department of Social Services Audit Guide, wherein certain types of expenditures are not allowable or are limited as to reimbursement. No federal financial assistance has been provided to a subrecipient.

Title: Note 3 - Indirect Cost Rate Accounting Policies: Expenditures reported in the schedule are reported on the accrual basis of accounting. When applicable, such expenditures are recognized following the cost principles contained in the Uniform Guidance and the 2021-22 California Department of Education and California Department of Social Services Audit Guide, wherein certain types of expenditures are not allowable or are limited as to reimbursement. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: CFI has not elected to use the 10% de minimis cost rate. CFI has not elected to use the 10% de minimis cost rate.