Notes to SEFA
Title: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Policies: Theaccompanyingscheduleofexpendituresoffederalawards(the"Schedule")includesthefederalawardactivityofCarolinaHealthCenters,Inc.underprogramsofthefederalgovernmentfortheyearendedMay31,2022.TheinformationinthisScheduleispresentedinaccordancewiththerequirementsofTitle2U.S.CodeofFederalRegulationsPart200,UniformAdministrativeRequirements,CostPrinciples,andAuditRequirementsforFederalAwards(UniformGuidance).BecausetheSchedulepresentsonlyaselectedportionoftheoperationsofCarolinaHealthCenters,Inc.,itisnot intended to and does not present the financial position, changes in net assets, or cash flows of Carolina Health Centers, Inc.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
ExpendituresreportedontheSchedulearereportedontheaccrualbasisofaccounting.Suchexpendituresarerecognizedfollowingthecostprinciples contained in the Uniform Guidance wherein certain types of expenditures are not allowable or are limited as to reimbursement.