Audit 28723

Accounting Policies: NOTE 1.BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards includes the federal award activity of First Step Staffing, Inc. and Subsidiaries under programs of the federal government for the year ended December 31, 2021. The information in this schedule is presented in accordance with the 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 this schedule presents only a selected portion of the operations of First Step Staffing, Inc. and Subsidiaries, it is not intended to and does not present the financial position, changes in net assets, or cash flows of First Step Staffing, Inc. and Subsidiaries. NOTE 2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures 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 allowable or are limited as to reimbursement. NOTE 3.INDIRECT COST RATE First Step Staffing, Inc. and Subsidiaries has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.