Audit 176922

Accounting Policies: Passaic Family Head Start, Inc.Notes to the Schedules of Expenditures of Federal Awards and State Financial AssistanceJune 30, 2022Note 1. General InformationThe accompanying Schedules of Expenditures of Federal Awards and State Financial Assistance present the activities in all the federal and state awards of Passaic Head Start. All financial assistance received directly from federal and state agencies as well as financial assistance passed through other governmental agencies are included on the schedule.Note 2. Basis of AccountingThe accompanying schedules are presented on the accrual basis of accounting. The amounts reported in the schedules as expenditures may differ from certain financial reports submitted to federal and state funding agencies due to those reports being submitted on a cash or modified accrual basis of accounting.Note 3. Relationship to Basic Financial StatementsFederal and state award expenditures are reported on the statement of functional expenses as program services. In certain programs, the expenditures reported in the financial statements may differ from the expenditures reported on the Schedule of Expenditures of Federal Awards and Schedule of State Financial Assistance due to program expenditures exceeding grant or contract budget limitations or due to the application of accounting policies required under accounting principles generally accepted in the United States of America.Note 4. Sub-RecipientsOf the federal and state expenditures presented in these schedules, no expenditures were used to provide federal or state awards to sub-recipients.Note 5. Indirect Cost RateThe Organization has elected not to use the 10% de minimis indirect cost rate as allowed under Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.