Audit 1930

Accounting Policies: Note 1 – Basis of Presentation - The accompanying schedule of expenditures of federal and state awards (the Schedule) includes the federal and state award activity of Community Action Corporation of South Texas (“CACOST”) under programs of the federal and state government for the year ended January 31, 2023. The information in the 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 Grant Management Standards. Because the Schedule presents only a selected portion of the operations of CACOST, it is not intended to and does not present the financial position, changes in net assets or cash flows of CACOST. Note 2 – Summary of Significant Accounting Policies - 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, wherein certain types of expenditures are not allowed or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The financial statements report categories of expenses that are attributable to more than one program or supporting function. Therefore, these expenses require allocation on a reasonable basis that is consistently applied. The expenses that are allocated include compensation and benefits, which are allocated in proportion to the number of units of activity related to the cost objective (i.e. number of transactions, personnel, etc.) Depreciation, amortization and occupancy are allocated on a square footage basis. Telephone costs are allocated based on phone line counts by program.