Title: NOTE A – BASIS OF PRESENTATION
Accounting Policies: Expenditures reported in 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 expenses are not allowable or are limited to reimbursement.
De Minimis Rate Used: N
Rate Explanation: Auditee utilized various agreed-upon indirect cost rates based on individual research and development grant agreements/awards as permitted.
The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal grant activity of Institute for Clinical Research, Inc. (“ICR”) 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
ICR, it is not intended to and does not present the financial position, changes in net assets, or cash
flows of ICR.
Title: NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Policies: Expenditures reported in 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 expenses are not allowable or are limited to reimbursement.
De Minimis Rate Used: N
Rate Explanation: Auditee utilized various agreed-upon indirect cost rates based on individual research and development grant agreements/awards as permitted.
Expenditures reported in 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 expenses are not allowable or are limited to reimbursement.
Title: NOTE C – INDIRECT COST RATE
Accounting Policies: Expenditures reported in 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 expenses are not allowable or are limited to reimbursement.
De Minimis Rate Used: N
Rate Explanation: Auditee utilized various agreed-upon indirect cost rates based on individual research and development grant agreements/awards as permitted.
ICR has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: NOTE D – RECONCILIATION TO THE FINANCIAL STATEMENTS
Accounting Policies: Expenditures reported in 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 expenses are not allowable or are limited to reimbursement.
De Minimis Rate Used: N
Rate Explanation: Auditee utilized various agreed-upon indirect cost rates based on individual research and development grant agreements/awards as permitted.
During the year, ICR had certain government grants that are fee-for-service in which ICR gets paid based on the completion of study protocol requirements and when study participant data and specimens, including test results, are submitted and accepted by the government agency. Once the data is accepted, the earnings process is completed, and ICR recognizes the fees earned. Therefore, total expenditures incurred may not equal to the actual funds received. For the year ended December 31, 2023, ICR expended a total of $887,825 in federal grant awards; however, a total of $961,512 was recognized as revenue, resulting in a difference of $73,687. The variance is the result of ICR incurring expenditures in the prior year for which the data had not yet been accepted by the applicable government agency until a point in time during the current year, which is required in order to recognize revenue.