Audit 8735

Accounting Policies: The accompanying schedule of expenditures of federal and state awards (the "Schedule") includes the federal and state award activity of Encompass Community Services ("Encompass") under programs of the federal government and State of California for the year ended June 30, 2023. The information in this Schedule 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) and the California Department of Education. Because the Schedule presents only a selected portion of the operations of the Encompass, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Encompass. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or limited as to reimbursement. Passthrough entity identifying numbers are presented where available and applicable. De Minimis Rate Used: N Rate Explanation: Encompass has elected to not use the 10% de minimis indirect cost rate for federal awards. Encompass applies indirect costs in accordance with the specific terms of its specific award agreements.