Notes to SEFA
Title: Basis of Presentation
Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, Cost Principles for Non-Profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Organization has not recovered its indirect costs using the 10% de minimis indirect cost rate as provided under the Uniform Guidance. Pass-through entity identifying numbers are presented when available. The amount presented on the schedule for the COVID-19 - Provider Relief Fund (PRF), Assistance Listing No. 93.498 for the year ended June 30, 2022 includes a total of $865,825 of PRF funds received from the U.S. Department of Health and Human Services (HHS), of which $438,554 was received between July 1, 2020 and December 31, 2020 and $427,271 was received between January 1, 2021 and January 31, 2021. In accordance with guidance from HHS, these amounts are presented as Period 2 and Period 3, respectively, in the HHS PRF Reporting Portal. The PRF funds of $865,825 were recognized as operating revenues in the Organization's consolidated financial statements for $549,474 and $316,351 in the fiscal years ended June 30, 2021 and 2022, respectively.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of Marrakech, Inc., Marrakech Housing Options, Inc., Marrakech Day Services, Inc. and Marrakech Residential Services, Inc. (the Organization) under programs of the Federal Government 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 Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), with the exception of the COVID-19 - Provider Relief Fund (PRF), Assistance Listing No. 93.498, which is presented in accordance with the program requirements, as described below. Because the schedule presents only a selected portion of the operations of the Organization, it is not intended to and does no present the financial position, changes in net assets or cash flows of the Organization.