Notes to SEFA
Title: Relationship to Financial Statements
Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Hope Clinic, Inc. (the Clinic) under programs of the federal government for the year ended June 30, 2022. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Clinic, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Clinic. 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 are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The following reconciles total federal expenditures per the Schedule to the financial statements: Total federal awards $1,397,064 Less: Building purchased in prior year (1,000,000) Building rehabilitation expenditures in prior year (200,000) Total government grant revenue as reported in the statement of activities $197,064
Title: Community Development Block Grant
Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Hope Clinic, Inc. (the Clinic) under programs of the federal government for the year ended June 30, 2022. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Clinic, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Clinic. 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 are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Community Development Block Grant provided by the Gwinnett County Development Program to purchase and rehabilitate a building was in the form of a loan which will be forgiven after 20 years, as long as the Clinic continues to use the facility for providing primary health care services to patients with predominately low and moderate income. Because of the continuing compliance requirements, the total loan balance is reported on the schedule of expenditures of federal awards.