Audit 25077

Accounting Policies: 1.GENERAL INFORMATION The accompanying schedule of expenditures of federal awards and state financial assistance presents the activities in all federal and state awards of Ocean Health Initiatives, Inc. All financial assistance received directly from federal and state agencies as well as financial assistance passed through other governmental agencies or nonprofit organizations are included on the schedule.2.BASIS OF ACCOUNTING The accompanying schedule of expenditures of federal awards and state financial assistance is presented using the accrual basis of accounting. The amounts reported in the schedule as expenditures may differ from certain financial reports submitted to federal and state funding agencies due to those reports being submitted on either cash or a modified cash basis of accounting.3.BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards and state financial assistance (the Schedule) includes the federal and state award activity of Ocean Health Initiatives, Inc. under programs of the federal and state 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) and the State of New Jersey Circular Letter 15-08-OMB. Because the Schedule presents only a selected portion of the operations of Ocean Health Initiatives, Inc., it is not intended and does not present the financial position, changes in net assets, or cash flows of Ocean Health Initiatives, Inc. 4.RELATIONSHIP TO BASIC FINANCIAL STATEMENTS Federal and state expenditures are reported on the statements of functional expenses as program services. In certain programs, the expenditures reported in the basic financial statements may differ from the expenditures reported in the schedule of expenditures of federal and state awards due to program expenditures exceeding grant or contract budget limitations or Organization matching or in-kind contributions which are not included as federal awards and state financial assistance.5.PREVENTIVE AND PRIMARY CARE PROGRAMOHI contracted with the State of New Jersey Department of Health to provide health and medical services to the uninsured population under the Preventive and Primary Care Program. This Letter of Agreement pays OHI a fixed amount per visit regardless of the actual costs incurred. During the year ended December 31, 2022, the amount earned and recognized as revenue under this Letter of Agreement was $1,500,691.6.INDIRECT COST The Organization does not have a federally negotiated indirect cost rate and has not elected to use the 10% de minimis cost rate as covered in section 200.414 in Uniform Guidance.7.SUBRECIPIENTSThe Organization provided no federal or state awards to sub recipients for the year ended December 31, 2022. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.