Audit 1548

Title: Subrecipients Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of Pensacola VOA Living Center, Inc. and is presented on the accrual basis of accounting. 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). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements. Federal expenditures of $1,936,157 are comprised of $99,157 in current year expenditures and a prior year federal loan of $1,837,000, which is required to be included each year the federal government imposes compliance requirements on the program funded by the original loan. De Minimis Rate Used: N Rate Explanation: The Project has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Of the federal expenditures presented in the Schedule, the Project provided no awards to subrecipients.