Notes to SEFA
Title: Contingency
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards and State Financial Assistance (theSchedule) presents the activity of all federal awards and state financial assistance of ChildrensDiagnostic & Treatment Center, Inc. (the Organization) 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 (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards and Chapter 10.650, Rules of the Auditor General.Therefore, some amounts presented in this Schedule may differ from amounts presented in, orused in, the preparation of the financial statements. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following cost principles contained in Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards and Chapter 10.650, Rules of the Auditor General, where in 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 grant revenue amounts received are subject to audit and adjustment. If any expenditures orexpenses are disallowed by the grantor agencies as a result of such an audit, any claim forreimbursement to the grantor agencies would become a liability of the Organization. In the opinionof management, all grant expenditures are in compliance with the terms of the grant agreementsand applicable federal and state laws and other applicable regulations.