Audit 290334

Title: NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Basis of presentation – The schedule of expenditures of federal awards (the schedule) is prepared 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 (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Federal expenditures include allowable costs funded by federal awards. Allowable costs are subject to the cost principles of the Uniform Guidance and include costs that are recognized in Valor’s financial statements in conformity with generally accepted accounting principles. Valor has elected not to use the 10% de minimis rate for indirect costs and does not have any subrecipients. Because the schedule presents only a selected portion of the operations of Valor, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Valor. De Minimis Rate Used: N Rate Explanation: The Auditee has elected not to use an indirect cost rate. Basis of presentation – The schedule of expenditures of federal awards (the schedule) is prepared 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 (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Federal expenditures include allowable costs funded by federal awards. Allowable costs are subject to the cost principles of the Uniform Guidance and include costs that are recognized in Valor’s financial statements in conformity with generally accepted accounting principles. Valor has elected not to use the 10% de minimis rate for indirect costs and does not have any subrecipients. Because the schedule presents only a selected portion of the operations of Valor, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Valor.