Audit 27373

Title: USDA Food Commodities Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of Opportunities Industrialization Center of Washington and is presented on the accrual basis of accounting. 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). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Organization receives food commodities from the United States Department of Agriculture (USDA). These commodities are received and distributed by the Organization, generally within days. The receipt and distribution of food commodities is included in the accompanying Schedule of Expenditures of Federal Awards, but not included in the basic financial statements, as the food commodities are not owned by the Organization. Therefore, only the administrative portion of the USDA grants is recorded as revenue in the accompanying basic financial statements.