Audit 317980

Accounting Policies: NOTE A – GENERAL The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of Proyecto Azteca, Inc. (a nonprofit organization). NOTE B – BASIS OF ACCOUNTING The accompanying Schedule of Expenditures of Federal Awards is presented using the accrual basis of accounting, which is described in Note 1 to the financial statements. The information in this schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Costs Principles and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the basic financial statements. NOTE C - RELATIONSHIP TO FEDERAL FINANCIAL REPORTS BASIS OF ACCOUNTING Amounts reported in the accompanying schedule may not agree with the amounts reported in the related Federal financial reports filed with the grantor agencies because of accruals made in the schedule, which will be included in future reports filed with the agencies. De Minimis Rate Used: N Rate Explanation: THE AUDITEE DID NOT USE THE DE MINIMUS COST RATE