Audit 329137

Title: NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Basis of presentation – The schedules of expenditures of federal awards and of 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 costs 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 Interfaith Ministries’ financial statements in conformity with generally accepted accounting principles. Indirect costs are reported utilizing Interfaith Ministries’ negotiated indirect cost rates; therefore, Interfaith Ministries does not use the 10% de minimis rate. Because the schedules present only a selected portion of the operations of Interfaith Ministries, they are not intended to and do not present the financial position, changes in net assets, or cash flows of Interfaith Ministries. De Minimis Rate Used: N Rate Explanation: Indirect costs are reported utilizing Interfaith Ministries’ negotiated indirect cost rates; therefore, Interfaith Ministries does not use the 10% de minimis rate. Basis of presentation – The schedules of expenditures of federal awards and of 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 costs 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 Interfaith Ministries’ financial statements in conformity with generally accepted accounting principles. Indirect costs are reported utilizing Interfaith Ministries’ negotiated indirect cost rates; therefore, Interfaith Ministries does not use the 10% de minimis rate. Because the schedules present only a selected portion of the operations of Interfaith Ministries, they are not intended to and do not present the financial position, changes in net assets, or cash flows of Interfaith Ministries.