Audit 319337

Title: NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Basis of presentation – The schedules of expenditures of federal and state awards (the schedules) are prepared on the accrual basis of accounting. The information in these schedules is presented in accordance with the requirements of Title 2 U. S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and the Texas Grant Management Standards. Federal and state expenditures include allowable expenses funded by federal and state grants. Allowable costs are subject to the cost principles of the Uniform Guidance and the Texas Grant Management Standards and include both costs that are capitalized and costs that are recognized as expenses in Brighter Bites’ financial statements in conformity with generally accepted accounting principles. Brighter Bites does not have any subrecipients and does not utilize the 10% de minimis rate for indirect costs or charge indirect costs to its grants. Because the schedules present only a selected portion of the operations of Brighter Bites, they are not intended to and do not present the financial position, changes in net assets, or cash flows of Brighter Bites. De Minimis Rate Used: N Rate Explanation: The Auditee has elected not to use an indirect cost rate. Basis of presentation – The schedules of expenditures of federal and state awards (the schedules) are prepared on the accrual basis of accounting. The information in these schedules is presented in accordance with the requirements of Title 2 U. S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and the Texas Grant Management Standards. Federal and state expenditures include allowable expenses funded by federal and state grants. Allowable costs are subject to the cost principles of the Uniform Guidance and the Texas Grant Management Standards and include both costs that are capitalized and costs that are recognized as expenses in Brighter Bites’ financial statements in conformity with generally accepted accounting principles. Brighter Bites does not have any subrecipients and does not utilize the 10% de minimis rate for indirect costs or charge indirect costs to its grants. Because the schedules present only a selected portion of the operations of Brighter Bites, they are not intended to and do not present the financial position, changes in net assets, or cash flows of Brighter Bites.