Audit 22495

Title: Relationship to Federal Financial Reports Accounting Policies: (1) Basis of PresentationThe accompanying schedule of expenditures of federal awards (the Schedule) includes thefederal award activity of Allen Action Agency, Inc. under programs of the federal government for theyear ended June 30, 2022. The information in this Schedule is presented in accordance with therequirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform AdministrativeRequirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).Because the Schedule presents only a selected portion of the operations of the Allen Action Agency,Inc., it is not intended to and does not present the financial position, changes in net assets, or cashflows of Allen Action Agency, Inc.(2) Summary of Significant Accounting PoliciesExpenditures reported on the Schedule are reported on the accrual basis of accounting. Suchexpenditures are recognized following the cost principles contained in the Uniform Guidance, whereincertain 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 Allen Action Agency, Inc. has not elected to use the 10% de minimus indirect cost rateas allowed under the Uniform Guidance. A reconciliation of total expenditures of federal awards reported in the schedule ofexpenditures of federal awards to total expenses per statement of functional expenses is as follows:Total expenses per statement of activities $ 2,039,523Add: Equipment additions 80,567Less: In-kind contributions (335,032)Depreciation (105,475)Non-federal expense (40,038)Total expenditures per schedule of federal awards $ 1,639,545