Notes to SEFA
Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal award activity of Area Agency of Aging, PSA2 (the "Agency"). The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code ofFederal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for FederalAwards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Agency, it is notintended to and does not present the financial position, changes in net assets, or cash flows of the Agency for the year endedDecember 31, 2022. 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 allowable or arelimited as to reimbursement. Amounts passed through to subrecipients are reported on the accrual basis. In accordance withcertain grant awards approved by funding sources, property and equipment expenditures are charged to expense in the periodduring which the assets are purchased instead of being recognized as an asset and depreciated over its useful life for grantreporting purposes. As a result, the expenses reflected on the Schedule of Expenditures of Federal Awards include the cost ofproperty and equipment purchased during the year rather than a provision for depreciation. Therefore, some amounts presentedin the schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.