Audit 320427

Title: NOTE 3 - PROGRAM COSTS Accounting Policies: NOTE 1 — BASIS OF ACCOUNTING: The accompanying Schedule of Expenditures of Federal Awards (“Schedule”) presents the activity of all federal financial assistance programs of the Spokane Housing Authority (“Authority”). The Authority’s reporting entity is defined in Note 1 to the Authority’s financial statements. All federal financial assistance received directly from the federal government as well as federal financial assistance that is passed through from other governmental agencies is required to be included on the Schedule. The Schedule is prepared on the same basis of accounting as the Authority’s financial statements. The Authority uses GAAP basis to report on the Schedule. For the purposes of the Schedule, depreciation expense is not recorded, and the cost of fixed asset additions are included as an expenditure. De Minimis Rate Used: N Rate Explanation: NOTE 2 — FEDERAL DE MINIMIS INDIRECT COST RATE: The Authority has not elected to use the 10-percent de minimis indirect cost rate allowed under Uniform Guidance. The amounts shown as current year expenditures represent only the federal grant portion of the program costs. Entire program costs, including the Authority’s portion, are more than shown. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement.