Audit 15222

Title: Basis of Presentation Accounting Policies: 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 are limited as to reimbursement. Negative amounts, if any, shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: Direct costs are costs that can be specifically identified with a program, and such costs are charged directly to the programs benefited. Indirect and joint costs are incurred for common or joint objectives, and such costs are grouped into common pools and distributed to programs benefited by reasonable and consistent cost allocation methods. Indirect Costs Indirect costs primarily include salaries and wages of certain administrative personnel, related fringe benefits, and certain other non-labor administrative expenses. Through October 31, 2023, indirect costs were generally allocated to programs based on the previously approved provisional rate of 13.40% of direct personnel costs. Joint Costs Joint costs, such as space, telephone, and general equipment and supplies, are recorded to individual cost pools and allocated to programs based on estimated benefits received. The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal award activity of Community Action of Eastern Iowa under programs of the federal government for the year ended October 31, 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). Because the Schedule presents only a selected portion of the operations of Community Action of Eastern Iowa, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Community Action of Eastern Iowa.