Audit 26005

Accounting Policies: NOTE A - BASIS OR PRESENTATIONThe accompanying schedule of expenditures of federal awards includes the federal and state award activity of Steps House, Inc. under programs of the federal government and the State of Tennessee 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). Because the schedule presents only a selected portion of the operations of Steps House, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Steps House, Inc.NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures 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 wherein certain types of expenditures are not allowed or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.NOTE C-FOOD STAMPSNonmonetary assistance is reported in the Schedule at the fair value of the food purchased with the donated food stamps.NOTE D- INDIRECT COST RATEAll indirect costs are allocated to the residential program based on square footage of use. All direct VA expenditures are allocated to each VA Program based on the number of bed days. The only indirect costs allocated to the VA Programs are allocated based on the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.NOTE E- MAJOR PROGRAMSUniform Guidance establishes a risk-based approach to determining which federal programs are major programs. The federal awards tested as major program was with the CFDA numbers of 64.024.NOTE F- MATCHING COSTSThe Schedule does not include matching expenditures. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate.