Audit 24126

Accounting Policies: NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND REPORING ENTITY(1)General: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) presents activity of all federal awards programs of Morovis Community Health Center, Inc. All federal awards received directly from federal agencies, as well a federal awards passed through other governmental agencies to Morovis Community Health Center, Inc., are included in the accompanying schedules. The Organization has elected not to use the 10 percent the minimis indirect cost rate allowed under the Uniform Guidance. (2)Basis of Accounting: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of Morovis Community Health Center, Inc. and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the audit requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Requirements for Federal Awards (Uniform Guidance), Audits of States, Local Governments, and Non-Profit Organizations. Public assistance grants expenditures are recognized in the period when: (1) FEMA has approved the Project Worksheet (PW) and (2) eligible expenditures are incurred. (3) Federal CFDA Number: The Catalog of Federal Domestic Assistance (CFDA) Number is a program identification number. The first two digits identify the federal department or agency that administers the program and the last three numbers are assigned by numerical sequence accordingly with the program name within the corresponding agency.(4) Relationship to Financial Statements: Revenues and expenses of the Federal Awards programs are included in Morovis Community Health Center, Inc.s financial statements. The reconciliation between the expenses in the financial statements and expenditures in the Schedule of Expenditures of Federal Awards is as follows: Expenses in the financial statements$ 20,941,250 Add: Capital expenditures in connection with net assets with donor restrictions264,946Less: Depreciation expenses, in connection with net assets with donor restrictions( 207,082)Less: Non-federal expenses( 15,488,596)Total Federal Expenditures $ 5,510,518 De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.