Audit 26425

Accounting Policies: NOTE A - BASIS OF PRESENTATIONThe accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activityof Harmony Health Medical Clinic and Family Resource Center (the Center) under programs of the federalgovernment for the year ended December 31, 2022. The information in this Schedule is presented in accordance withthe requirements of Title 2 U. S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements,Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presentsonly a selected portion of the operations of the Center, it is not intended to and does not present the financial position,changes in net assets or cash flows for the Center.For purposes of the Schedule, federal awards include all grants and contracts entered into directly between theCenter, agencies, and departments of the federal government. The awards are classified into major programcategories in accordance with the provisions of the Uniform Grant Guidance.NOTE B - BASIS OF ACCOUNTINGExpenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures arerecognized following the cost principles contained in Title 2 U. S. Code of Federal Regulations (CFR) Part 200,Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UniformGuidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negativeamounts shown on the Schedule represent adjustments or credits made in the course of business to amounts reportedas expenditures in prior years.NOTE C - INDIRECT COST RATEThe Center elected to use the ten percent federal de minimis cost rate allowed under Title 2 U. S. Code of FederalRegulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements forFederal Awards (Uniform Guidance) when applicable.NOTE D - RELATIONSHIP OF SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS TOFINANCIAL STATEMENTSConsistent with managements policy, federal awards and other grants are recorded in respective revenue categories.As a result, the amount of total federal awards expended on the Schedule does not agree to total grant revenue on theStatement of Operations and Changes in Net Assets as presented in the Centers report on the audited financialstatements. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate.