Title: THE ORGANIZATION
Accounting Policies: The schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activities of
CFC. Expenditures reported in the Schedule are reported on the accrual basis of accounting. Because the
Schedule presents only a selected portion of CFC’s operations, it is not intended to and does not present
its financial position, changes in net assets, or cash flows for 2023.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate
Community Family Centers, Inc. (CFC) receives federal grants to carry out its programs and services for
low-income families in the East End of Houston, Texas and its surrounding communities
Title: BASIS OF PRESENTATION
Accounting Policies: The schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activities of
CFC. Expenditures reported in the Schedule are reported on the accrual basis of accounting. Because the
Schedule presents only a selected portion of CFC’s operations, it is not intended to and does not present
its financial position, changes in net assets, or cash flows for 2023.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate
The schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activities of
CFC. Expenditures reported in the Schedule are reported on the accrual basis of accounting. Because the
Schedule presents only a selected portion of CFC’s operations, it is not intended to and does not present
its financial position, changes in net assets, or cash flows for 2023.
Title: NONCASH ASSISTANCE
Accounting Policies: The schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activities of
CFC. Expenditures reported in the Schedule are reported on the accrual basis of accounting. Because the
Schedule presents only a selected portion of CFC’s operations, it is not intended to and does not present
its financial position, changes in net assets, or cash flows for 2023.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate
Amounts from the Emergency Food Assistance Program included on the accompanying Schedule of
Expenditures of Federal Awards represent noncash assistance in the form of food commodities.
Title: INDIRECT COST
Accounting Policies: The schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activities of
CFC. Expenditures reported in the Schedule are reported on the accrual basis of accounting. Because the
Schedule presents only a selected portion of CFC’s operations, it is not intended to and does not present
its financial position, changes in net assets, or cash flows for 2023.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate
Expenditures included in the Schedule represent both direct costs and indirect costs. Instead of using the
10% de minimus indirect cost rate allowed under the Uniform Guidance, CFC’s indirect costs are based
on an indirect cost allocation plan that has been agreed upon and approved by the applicable grantor. In
2023, CFC was issued a provisional Modified Total Direct Cost rate of 23.56% for 2023 and 2024.
Title: RELATIONSHIP TO THE SCHEDULE OF FINANCIAL REPORTS SUBMITTED TO GRANT AWARDING AGENCIES
Accounting Policies: The schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activities of
CFC. Expenditures reported in the Schedule are reported on the accrual basis of accounting. Because the
Schedule presents only a selected portion of CFC’s operations, it is not intended to and does not present
its financial position, changes in net assets, or cash flows for 2023.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate
Expenditures included in the Schedule may differ from amounts reflected in the financial reports
submitted to grant awarding agencies for the following reasons:
Expenses accrued at the end of CFC’s fiscal year may not be included in the financial reports
submitted to grant awarding agencies until after year-end;
Program matching costs that are reported in the financial reports submitted to awarding agencies
are not included in the amounts reported in the Schedule; and
Differences may exist between grant periods and CFC’s accounting period.
Title: CONTINGENCIES
Accounting Policies: The schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activities of
CFC. Expenditures reported in the Schedule are reported on the accrual basis of accounting. Because the
Schedule presents only a selected portion of CFC’s operations, it is not intended to and does not present
its financial position, changes in net assets, or cash flows for 2023.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate
Grants require the fulfillment of certain conditions set forth in grant agreements and are regularly
monitored and reviewed by the grantors. Failure to satisfy the requirements of contact agreements could
result in disallowed costs and return of funds to grantors. Management believes that CFC is in substantial
compliance with grant provisions and requirements and that disallowed costs, if any, will not be
significant to affect the amounts and disclosures in the financial statements.