Audit 16920

Accounting Policies: 1. GENERAL INFORMATION - The accompanying schedule of expenditures of federal, state and city awards presents activities in all federal, state and city award programs of Resources for Human Development, Inc. All financial assistance received directly from federal agencies, as well as financial assistance passed through other governmental agencies or not-for-profit organizations, is included on the schedule. The Organization has reported Provider Relief Funds (PRF) expenditures of $4,728,674 and $450,070 for the years ended June 30, 2022 and 2021, respectively on the schedule of federal, state and city awards (SEFA). Of these expenditures, $2,020,781 and $2,707,893 were included as revenue in the statement of activities during the years ended June 30, 2022 and 2021, respectively. In accordance with the guidance in the U.S. Department of Health and Human Services (HHS) updates (dated July 15, 2021), to the PRF Frequently Asked Questions, the correlating expenditures should be reported on the SEFA based on the information reported in the PRF Reporting Portal as opposed to when it is recorded as revenue in the consolidated financial statements. 2. BASIS OF ACCOUNTING - The accompanying schedule of expenditures of federal, state and city awards is presented using the accrual basis of accounting. The amounts reported in this schedule as expenditures may differ from certain financial reports submitted to funding agencies because those reports may be submitted on either a cash or modified cash basis of accounting. 3. RELATIONSHIP TO BASIC CONSOLIDATED FINANCIAL STATEMENTS - Federal, state and city award expenditures are reported on the consolidated statement of functional expenditures as program costs. However, expenditures in the schedule of expenditures of federal, state and city awards for certain programs which have incurred deficits have been limited to the related contracted amount. In addition, for certain programs, the expenditures reported in the basic consolidated financial statements may differ from the expenditures reported in the schedule of expenditures of federal, state and city awards due to program expenditures exceeding grant or contract budget limitations which are not included as federal, state and city financial assistance.As further discussed in footnote 2 to the basic consolidated financial statements, the Organization has a policy which allows the carryover of unused vacation time for program employees. This schedule does not reflect the accrual for these expenditures. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.