Audit 17171

Title: NOTE B - PRE-AWARD COSTS Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (SEFA) includes the federal grant activity of Child Advocates of Nevada County and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with therequirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in, the preparation of basic financial statements. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. Although the accompanying Schedule of Expenditures of Federal Awards (SEFA) ispresented on the accrual basis of accounting, expenses incurred in a pre-award period were not billable to the grant at June 30, 2022. These expenditures are reported as incurred for the financial statement purposes but not included on the SEFA as they were not chargeable to the grant until the next fiscal year. The Maternal, Infant and Early Childhood Home Visiting Program contract covers a two-year period ending September 30, 2022. In the statement of functional expenses there were $30,072 in costs related to costs that could not be billed in the period ended June 30, 2022 and were therefore excluded from the Schedule of Expenditures of Federal Awards. These expenses were allowable in the contract for the period of July 1, 2022 to September 30, 2022 and will therefore be reported as revenues and federal awards expended in the next fiscal year.