Audit 15332

Title: BASIS OF PRESENTATION Accounting Policies: The Association maintains its accounting records in accordance with the modified cash basis of accounting, which is a basis of accounting other than accounting principles generally accepted in the United States of America. Such expenditures are recognized following the cost principles contained the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: In accordance with Section 2 U.S. Code of Federal Regulations Part 200.412 the Association is allowed to elect to use the ten percent de minimis indirect cost rate. The Association did not elect to use the 10% de minimis cost rate. The accompanying schedule of expenditures of federal awards includes the federal grant activity of Martin Luther King, Jr. Child Care Center Association, Inc. (the Association) and is presented on the modified cash basis of accounting. The information in this Schedule is presented in accordance with 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 the Association, it is not intended to and does not present the financial position, or changes in net assets of the Association.