Audit 20111

Accounting Policies: NOTE 1 - BASIS OF PRESENTATIONThe accompanying schedule of expenditures of federal and state awards includes the federal and stategrant activities of the South Texas Family Planning and Health Corporation under programs of the federalgovernment and the State of Texas for the year ended August 31, 2022. The information in this scheduleis in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, UniformAdministrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the UniformGuidance), and the Texas Uniform Grant Management Standards (UGMS). Because the schedule presentsonly a portion of the operations, it is not intended to, and does not present the financial position, changesin net assets or cash flows of South Texas Family Planning and Health Corporation.NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reported on the Schedule are reported on the accrual basis of accounting. Such expendituresare recognized following the cost principles contained in the Uniform Guidance, wherein certain types ofexpenditures are not allowable or are limited as to reimbursement.NOTE 3 - RELATIONSHIP TO FEDERAL FINANCIAL REPORTSAmounts reported in the accompanying schedule may not agree with the amounts reported in the relatedfederal financial reports filed with the grantor agencies because of accruals made in the schedule whichwill be included in future reports filed with those agencies.NOTE 4 - CONTINGENT LIABILITIESSTFPHC participates in a number of state and federally assisted programs. These programs are subject tofinancial and compliance audits by the grantors or their representatives. The purpose of these audits is toensure compliance with conditions relating to granting of funds and other reimbursement regulations.These programs have compliance requirements, and should federal or state auditors discover areas ofmaterial noncompliance, those funds may be subject to refund if so determined by administrative auditreview. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate.