Audit 320120

Title: NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Accounting The Organization utilizes the accrual basis of accounting for these funds and the accompanying schedule of expenditures of federal awards has been prepared accordingly. Schedule of Expenditures of Federal Awards The schedule of expenditures of federal awards presented is prepared from only the accounts of the grant programs and, therefore, does not present the financial position or results of operations of Promesa Behavioral Health. Indirect Cost Rate The Organization is not using the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Pass-through Grantors’ Identifying Number When federal awards are received from a pass-through grantor, the Schedule of Expenditures of Federal Awards shows, if available, the identifying number assigned by the pass-through grantor. When no identifying number is shown, the Organization determined that no identifying number is assigned for the program, or the Organization was unable to obtain an identifying number from the pass-through grantor. De Minimis Rate Used: N Rate Explanation: Indirect Cost Rate The Organization is not using the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Basis of Accounting The Organization utilizes the accrual basis of accounting for these funds and the accompanying schedule of expenditures of federal awards has been prepared accordingly. Schedule of Expenditures of Federal Awards The schedule of expenditures of federal awards presented is prepared from only the accounts of the grant programs and, therefore, does not present the financial position or results of operations of Promesa Behavioral Health. Indirect Cost Rate The Organization is not using the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Pass-through Grantors’ Identifying Number When federal awards are received from a pass-through grantor, the Schedule of Expenditures of Federal Awards shows, if available, the identifying number assigned by the pass-through grantor. When no identifying number is shown, the Organization determined that no identifying number is assigned for the program, or the Organization was unable to obtain an identifying number from the pass-through grantor.