Audit 23430

Accounting Policies: (1) Basis of Presentation: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) presents the expenses of The American National Red Cross (the Organization) incurred in connection with federally sponsored programs for the year ended June 30, 2022. The federal award information is presented in accordance with the provisions of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the consolidated financial statements. For purposes of the Schedule, federal awards include all grants, contracts, and other financial assistance entered into directly between the Organization and agencies and departments of the federal government, as well as subawards from nonfederal organizations made under federally sponsored agreements. (2) Summary of Significant Accounting Policies Expenses for federal awards of the Organization are determined using the accrual basis of accounting. Such expenses are recognized following, as applicable, either the cost principles in OMB Circular A-122, Cost Principles for Non-Profit Organizations, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenses are not allowable or are limited as to reimbursement. Expenses reported include indirect costs, relating primarily to facilities operation and maintenance, and general, divisional, departmental administration services, which are allocated to direct costs based on negotiated formulas referred to as indirect cost rates. Indirect costs allocated to federal awards are based on provisional rates negotiated with the cognizant federal agency. Noncash assistance is included in the expenditures on the Schedule at the assessed value provided by the Federal agency. The Organization has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.