Notes to SEFA
Accounting Policies: The accompanying schedule of expenditures of federal awards includes the Federal grant activity of DavidLawrence Mental Health Center, Inc. ("DLC") an is presented in accordance with accounting principlesgenerally accepted in the United States of America. The information in this Schedule is presented inaccordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, UniformAdministrative Requirements, Cost Principles, and Audit Requirements for Federal Awards ("UniformGuidance"). The schedule of expenditures of federal awards is prepared on the accrual basis of accounting.For new awards or modifications of existing awards after December 26, 2014, the expenditures reported in the schedule of expenditures of federal awards follow the cost principles contained in the Uniform Guidance. For existing awards prior to December 26, 2014, the expenditures follow the cost principles contained in OMB Circular A-122, Cost Principles for Non-Profit Organizations. The cost principles indicate that certain types of expenditures are not allowed or reimbursements of allowable costs are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.