Audit 296240

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Agency has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The Agency operates an Administrative Pool whereby indirect costs are allocated among the various grants at a rate that is equivalent to that specific grant’s salaries and benefits share of total Agency salaries and benefits. This allocation plan is approved by the Agency’s oversight agent, the U.S. Department of Health and Human Services. The Agency charged indirect costs to federal grants using a provisional rate of 10.20%. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Salisbury-Rowan Community Action Agency, Inc. (the Agency) under programs of the federal government for the year ended October 31, 2022. The information in the 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). Because the Schedule represents only a selected portion of the Agency’s operations, it is not intended to, and does not, present the financial position, changes in net assets or cash flows of the Agency.

Title: Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Agency has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The Agency operates an Administrative Pool whereby indirect costs are allocated among the various grants at a rate that is equivalent to that specific grant’s salaries and benefits share of total Agency salaries and benefits. This allocation plan is approved by the Agency’s oversight agent, the U.S. Department of Health and Human Services. The Agency charged indirect costs to federal grants using a provisional rate of 10.20%. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.

Title: Indirect Cost Rate Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Agency has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The Agency operates an Administrative Pool whereby indirect costs are allocated among the various grants at a rate that is equivalent to that specific grant’s salaries and benefits share of total Agency salaries and benefits. This allocation plan is approved by the Agency’s oversight agent, the U.S. Department of Health and Human Services. The Agency charged indirect costs to federal grants using a provisional rate of 10.20%. The Agency has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The Agency operates an Administrative Pool whereby indirect costs are allocated among the various grants at a rate that is equivalent to that specific grant’s salaries and benefits share of total Agency salaries and benefits. This allocation plan is approved by the Agency’s oversight agent, the U.S. Department of Health and Human Services. The Agency charged indirect costs to federal grants using a provisional rate of 10.20%.

Title: In-Kind Contributions Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Agency has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The Agency operates an Administrative Pool whereby indirect costs are allocated among the various grants at a rate that is equivalent to that specific grant’s salaries and benefits share of total Agency salaries and benefits. This allocation plan is approved by the Agency’s oversight agent, the U.S. Department of Health and Human Services. The Agency charged indirect costs to federal grants using a provisional rate of 10.20%. The value of federal awards expended in the form of noncash assistance for the year ended September 30, 2022 was $285,855.