Audit 331666

Title: NOTE 3: DEPARTMENT OF DRUG AND ALCOHOL PROGRAMS Accounting Policies: NOTE 1: BASIS OF ACCOUNTING The accompanying schedule of expenditures of federal awards (the Schedule) presents the expenditures of all federal award programs of Alcohol & Drug Abuse Services, Inc. (ADAS) using the accrual basis of accounting. NOTE 2: RELATIONSHIP TO BASIC FINANCIAL STATEMENTS The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this Schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Because the Schedule presents only a selected portion of the operations of ADAS, it is not intended to and does not present the financial position, changes in net assets or cash flows of ADAS. De Minimis Rate Used: N Rate Explanation: ADAS has elected not to use the 10 percent de minimus indirect cost rate allowed under Uniform Guidance. For the year ended June 30, 2024, the Department of Drug and Alcohol Programs (DDAP) awarded ADAS a total of $2,647,263 which consists of federal funding and funding from the Commonwealth of Pennsylvania. ADAS received $1,556,355 of federal funding from DDAP during fiscal year 2024. For the year ended June 30, 2024, ADAS recognized revenue of $1,744,229 for its federally funded DDAP programs.