Notes to SEFA
Accounting Policies: Basis of Presentation
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal
award activity of Community Health Center of Lubbock, Inc. under programs of the federal government
for the year ended December 31, 2023. 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 presents only a selected portion of the operations of the Center, it is not intended
to and does not present the financial position, change in net assets, or cash flows of the Center.
Summary of Significant Accounting Policies
(A) 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 allowed or are limited as to reimbursement.
(B) Community Health Center of Lubbock, Inc. has not elected to use the 10 percent de minimus
indirect cost rate as allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.