Notes to SEFA
Accounting Policies: 1. Summary of Significant Accounting Policies: Basis of Presentation: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) presents the activity of all federal award programs administered by Compass House (the Organization), an entity as defined in Note 1 to the Organization's basic financial statements. Federal awards received directly from federal agencies, as well as federal awards passed through from other entities, are included on the Schedule. Basis of Accounting: The Organization uses the accrual basis of accounting for federal programs, consistent with the financial statements. The amounts reported as federal expenditures generally were obtained from the appropriate federal financial reports for the applicable programs and periods. The amounts reported in these federal financial reports are prepared from records maintained for each program, which are periodically reconciled to the Organization's financial reporting system.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.