Notes to SEFA
Title: Note 5 - Food Commodities
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the "Schedule") includes the federal awards activity of Action Pathways, Inc. under programs of the federal government for the year ended December 31, 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 Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Action Pathways, Inc., it is not intended to and does not present the financial position, changes in net assets or cash flows of Action Pathways, Inc. Expenditures reported on the Schedule are reported on the modified-cash basis of accounting. The modified-cash basis used by management differs in many respects from accounting principles generally accepted in the United States of America as detailed below:The acquisition of property and equipment is shown as an expense, which means that depreciation expense is never shown as such, nor is there ever a gain or loss to recognize on the disposal of property and equipment during its estimated useful life. 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.
Nonmonetary assistance is reported in this Schedule at the fair market value of commodities received. At December 31, 2022, Action Pathways, Inc. had food commodities totaling $294,902 in inventory
Title: Note 4 - Non-financial Contributions
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the "Schedule") includes the federal awards activity of Action Pathways, Inc. under programs of the federal government for the year ended December 31, 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 Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Action Pathways, Inc., it is not intended to and does not present the financial position, changes in net assets or cash flows of Action Pathways, Inc. Expenditures reported on the Schedule are reported on the modified-cash basis of accounting. The modified-cash basis used by management differs in many respects from accounting principles generally accepted in the United States of America as detailed below:The acquisition of property and equipment is shown as an expense, which means that depreciation expense is never shown as such, nor is there ever a gain or loss to recognize on the disposal of property and equipment during its estimated useful life. 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.
Non-financial contributions, program income, and other local expenditures, includes non-financial contributions of $175,070.