Audit 308091

Accounting Policies: 1. SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying Schedule of Expenditure of Federal Awards (the Schedule) includes the federal award activity of the Community Action Partnership for Madison County, an entity as defined in Note 1 to the Organization’s financial statements, under programs of the federal government for the year ended September 30, 2023. The information in this 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 Community Action Partnership for Madison County, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Community Action Partnership for Madison County. Basis of Accounting Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The amounts reported as federal expenditures were obtained from the financial records detail, which is the source of the consolidated financial statements. De Minimis Indirect Cost Rate Community Action Partnership for Madison County has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Program Cost/Matching Contributions The amounts shown as current year expenses represent only the federal grant portion of the program costs. Entire program costs including the Organization’s portion, may be more than shown. The Organization’s records should be consulted to determine amounts expended or matched from non-federal sources. Long-Term Debt - Economic Injury Disaster Loan AL#59.008 At September 30, 2023 and 2022, long-term debt consisted of the following: 2023 2022 SBA Loan – The Organization entered in to a secured disaster loan with the U.S. Small Business Administration (SBA) for $150,000 on November 10, 2020. The loan is payable over 30 years with monthly payments of $641 for principal and interest at a rate of 2.75% per annum. Payments were to begin twelve months after the date of the note. The loan accrues interest during this twelve-month period. The loan is collateralized with the general assets of the Organization. $ 146,959 $ 150,855 De Minimis Rate Used: N Rate Explanation: De Minimis Indirect Cost Rate Community Action Partnership for Madison County has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.