Audit 340188

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Mid-Iowa Community Action, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Organization charges certain indirect program costs to an indirect cost fund and distributes these costs to programs based on a provisional indirect cost rate of 19.95% through September 30, 2026, approved by the U.S. Department of Health and Human Services. The indirect cost rate is applied to each program’s salaries, wages and fringe benefits to determine the amount of indirect cost charged to such programs from the indirect cost fund. Under a provisional rate, as opposed to a predetermined rate, the fund is annually reviewed and an actual rate is subsequently determined based upon the fiscal year expenditures, at which time the indirect costs charged to programs is adjusted. The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal award activity of Mid-Iowa Community Action, Inc. under programs of the federal government for the year ended September 30, 2024. The information in this 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). Because the Schedule presents only a selected portion of the operations of Mid-Iowa Community Action, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Mid-Iowa Community Action, Inc.