Notes to SEFA
Accounting Policies: NOTE 1 - BASIS OF PRESENTATIONThe accompanying Schedule of Expenditures of Federal Awards and State Financial Assistance(the schedule) is presented on the accrual basis of accounting. The purpose of the schedule is topresent a summary of those activities represented by CAAP, Inc. for the year ended June 30,2022, which have been financed by the U.S. Government (federal awards). For the purpose of theschedule, federal awards include all of federal assistance and procurement relationships enteredinto directly by CAAP, Inc., it is not intended to and does not present either the financial positionor the changes in fund balances of CAAP, Inc. The information in this schedule is presented inaccordance with the requirements of the Title 2 U.S. Code of Federal Regulations Part 200,Uniform Administrative Requirements, Cost Principles, and Audit Requirements for FederalAwards (Uniform Guidance). For Uniform Guidance information for the related entities ofCAAP, Inc. see separately issued financial statements.Individual awards within each category of federal awards are identified by CFDA number andprogram name if the award is individually significant to the category of award. All other awardsare presented in total by funding agency.NOTE 2 - BASIS OF ACCOUNTINGRevenue is recognized when received or when earned by the organization.The expenditures presented in the schedule were developed from grant records and federal, state,and local financial reports which have been reconciled to the central accounting records ofCAAP, Inc.CAAP, Inc. has not elected to use the 10% de minimis indirect cost rate allowed under theUniform Guidance.NOTE 3 - CONTINGENCIESThe federal and state grants received by CAAP, Inc. are subject to audit and adjustment. If anyexpenditures are disallowed by the grantor agencies as a result of such an audit, the grantoragencies could make a claim for reimbursement, which would become a liability of CAAP, Inc.- 29
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.