Audit 316223

Accounting Policies: NOTE 1 BASIS OF PRESENTATION The accompanying Schedule of Expenditures of Federal Awards (the Schedule) summarizes the federal awards activity of South Central Family Health Center (SCFHC) under programs of the federal government for the year ended December 31, 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 SCFHC, it is not intended to, and does not present the financial position, changes in net assets, or cash flows of SCFHC as of and for the year ended December 31, 2023. NOTE 2 BASIS OF ACCOUNTING Expenditures 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 allowable or are limited as to reimbursement. SCFHC has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. NOTE 3 RELATIONSHIP OF SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS TO THE FINANCIAL STATEMENTS Consistent with management’s policy, federal awards are recorded in the same account categories as grants from other sources, which are together reported as grants and contributions revenues in SCFHC’s Financial Statements. As a result, the amount of total federal awards reported on the Schedule does not agree with total grants and contributions revenues reported on the Statement of Activities as presented in SCFHC's audited financial statements for the year ended December 31, 2023. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.