Audit 18057

Accounting Policies: NOTE 1. BASIS OF PRESENTATION: The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of Lutheran Social Services of the South, Inc.(the "Organization") under programs of the federal and state government for the year ended March 31, 2022. 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) and the State of Texas Uniform Grant Management Standards (UGMS), which includes the State of Texas Single Audit Circular. Because the schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the consolidated financial position, changes in net assets, or cash flows of the Organization.1) Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and UGMS, wherein certain types of expenditures are not allowed or are limited as to reimbursement.2) The commodities received, which are noncash revenues, are valued using prices provided by the United States Department of Agriculture.3) Grants, cost reimbursement contracts, cooperative agreements, and direct appropriations are considered expended when the expenditure or expense transactions occur.4) For those funds that have matching revenues and state funding, federal and state expenditures were determined by deducting matching revenues from total expenditures. NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: 1) Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and UGMS, wherein certain types of expenditures are not allowed or are limited as to reimbursement. 2) The commodities received, which are noncash revenues, are valued using prices provided by the United States Department of Agriculture.3) Grants, cost reimbursement contracts, cooperative agreements, and direct appropriations are considered expended when the expenditure or expense transactions occur. 4) For those funds that have matching revenues and state funding, federal and state expenditures were determined by deducting matching revenues from total expenditures. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.