Audit 342250

Title: Notes Payable Accounting Policies: The accompanying consolidated schedule of expenditures of federal, state and city awards presents the activities in all federal, state and city award programs of Women Against Abuse, Incorporated and Women Against Abuse Legal Center (collectively, the “Organization”). All financial awards received directly from federal agencies, as well as financial awards passed through other governmental and nonprofit agencies, are presented on the consolidated schedule of expenditures of federal, state and city awards. The information in this schedule 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 City of Philadelphia Subrecipient Audit Guide (“the Guide”). Because the schedule presents only a selected portion of the operations of the Organization, it is not intended to, and it does not, present the financial position, change in net assets or cash flows of the Organization. The accompanying consolidated schedule of expenditures of federal, state and city awards is presented on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Federal, state and city award expenditures are reported on the consolidated statements of functional expenses as program services. In certain programs, the expenditures reported in the basic consolidated financial statements may differ from expenditures reported in the consolidated schedule of expenditures of federal, state and city awards due to presentation differences for nongrant sources which provided support for the program. De Minimis Rate Used: N Rate Explanation: Auditee used agreed upon rates in contract and grant agreements. The Organization has a noninterest bearing loan from the Philadelphia Housing Development Corporation (“PHDC”) that was used to finance the renovations of the Sojourner House transitional housing property. This obligation is secured by a second mortgage on the property. The loan agreement includes a requirement that the transitional housing facility be leased to and occupied by low or very low-income families for 15 years or until the obligation is paid in full, whichever is longer. The outstanding balance of this loan as of June 30, 2023 was $1,200,000, of which $50,000 was the federal loan balance, expended using Community Development Block Grants/Entitlement Grants funding. The entire loan balance will be forgiven in 30 years from the date of project completion, September 2013, provided that the Organization is not in default of any terms or conditions of the loan agreement. The loan from the Philadelphia Redevelopment Authority is comprised of both federal and city funding noted on pages 32 and 35 of the consolidated schedule of expenditures of federal, state and city awards.