Audit 250100

Accounting Policies: 1. Basis of PresentationThe accompanying schedule of expenditures of federal awards includes the federal grant activity ofCommunity Action Partnership of Orange County and is presented on the accrual basis ofaccounting and in accordance with the requirements of Title 2 U.S. Code of Federal RegulationsPart 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements forFederal Awards (Uniform Guidance).For purposes of this schedule, federal awards include both federal financial assistance receiveddirectly from a federal agency, as well as federal funds received indirectly by CAP OC from a nonfederalagency or other organizations. Only the portion of program expenditures reimbursable withsuch federal funds is reported in the accompanying schedule. Program expenditures in excess ofthe maximum federal reimbursement authorized or the portion of program expenditures that werefunded with state, local or other non-federal funds are excluded from the accompanying schedule.Because the Schedule presents only a selected portion of the operations of Community ActionPartnership of Orange County, it is not intended to and does not present the financial position,changes in net assets, or cash flows of Community Action Partnership of Orange County.2. Summary of Significant Accounting PoliciesExpenditures reported on the Schedule are reported on the accrual basis of accounting. Suchexpenditures 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.Community Action Partnership of Orange County has elected to use the 10 percent de minimisindirect cost rate as allowed under the Uniform Guidance.3. Food DistributionThe value of USDA food commodities received during the year was estimated by the USDA. Thevalue of USDA food commodities distributed during the year includes amounts held in inventory atthe beginning of the year. As of December 31, 2022, Community Action Partnership of OrangeCounty had an inventory of USDA food commodities of $2,853,213. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate.