Audit 31978

Accounting Policies: BASIS OF PRESENTATION The accompanying Schedule of Expenditures of Federal Awards (the Schedule)includes the federal award activity of Abuse Counseling and Treatment, Inc. under the programs of the federal government for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements of 2CFR 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 Abuse Counseling and Treatment, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Abuse Counseling and Treatment, Inc. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Schedule of Expenditures of Federal Awards has been prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America and is in accordance with the Uniform Guidance. Expenditures reported on the Schedule of Expenditures of Federal Awards include cash disbursements, whether capitalized or expensed, during the fiscal year, as well as grant related amounts recorded as payable at year end. Revenues reported on the Schedule of Expenditures of Federal Awards include cash receipts, whether recognized or deferred, as well as grant receivables recorded at year end. Basis of Accounting Expenditures reported on the Schedule 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. Negative amounts shown on the Schedule, if any, represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. SUBRECIPIENTS During the year ended June 30, 2022, there were no funds passed through to subrecipients. COVID RELATED GRANT Abuse Counseling and Treatment, Inc. received the Payroll Protection Program(PPP) Loan CFDA 59.073 during the year ended June 30, 2020. This grant is not listed on the Schedule of Expenditures of Federal Awards (SEFA) as it is not subject to Uniform Guidance. The PPP was partially forgiven on October 22, 2021 in the amount of $312,932. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.