Audit 27641

Accounting Policies: -2-(1) Basis of PresentationThe accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of Retreat Inc. (the Retreat, a nonprofit organization) as defined in Note (1) to the Retreats financial statements, under programs of the federal government for the year ended December 31, 2022. The information in this Schedule is presented in accordance with the requirement 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 the Retreat, it is not intended to and does not present the financial position, changes in net assets, functional expenses or cash flows of the Retreat.(2) Summary of Significant Accounting PoliciesThe amounts reported as federal expenditures were obtained from the federal financial reports for the applicable program and periods. The amounts included in these reports are prepared from records maintained for each program, which are reconciled with the Retreats financial reporting system. These records are periodically reconciled to the general ledger which is the source of the general purpose financial statements. Such expenditures 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.Disallowances/adjustmentsNegative amounts shown on the Schedule of Expenditures of Federal Awards (when applicable) represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.Indirect CostsIndirect costs are included in the reported expenditures to the extent they are included in the federal financial reports used as the source of the data presented. Under the Uniform Guidance, absent an agreed upon indirect cost rate, the Retreat must elect to use the 10- percent de minimis indirect cost rate as allowed under the Uniform Guidance. There is no other indirect cost allocation plan in effect.Matching CostsMatching costs (i.e. the Retreats share of certain program costs) are not included in the reported expenditures. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.