Audit 340645

Accounting Policies: NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Accounting The accompanying Schedule of Expenditures of Federal and State Awards includes the expenditures of federal and state awards of California Young World, Inc.; these expenditures are presented on the accrual basis of accounting. The federal information in this schedule is presented in accordance with the requirements of Uniform Guidance, 2 CFR Part 200, Subpart F. Therefore, some amounts presented in this Schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: NOTE 2: INDIRECT COST REIMBURSEMENTS The Uniform Guidance requires that all indirect costs be charged through the use of an approved indirect cost rate. When no indirect cost rate has been approved, the Uniform Guidance allows for a one-time election to use a 10% de minimus reimbursement rate. The Organization has elected not to use the 10% de minimus indirect cost rate.