Audit 349934

Title: NOTE 1: 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 UNIFORM GUIDANCE, WHEREIN CERTAIN TYPES OF EXPENDITURES ARE NOT ALLOWABLE OR ARE LIMITED AS TO REIMBURSEMENT. De Minimis Rate Used: N Rate Explanation: THE ORGANIZATION HAS ELECTED NOT TO USE THE 10 PERCENT DE MINIMIS COST RATE ALLOWED UNDER THE UNIFORM GUIDANCE. THE ACCOMPANYING SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS INCLUDE THE FEDERAL GRANT ACTIVITY OF SOUTHERN WORKFORCE BOARD, INC. (A NONPROFIT ORGANIZATION)(THE ORGANIZATION) UNDER PROGRAMS OF THE FEDERAL GOVERNMENT FOR THE YEAR ENDED JUNE 30, 2024. THE INFORMATION IN THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS IS PRESENTED ON THE ACCRUAL BASIS OF ACCOUNTING AND 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 THE ORGANIZATION IT IS NOT INTENDED TO AND DOES NOT PRESENT THE FINANCIAL POSITION, CHANGES IN NET ASSETS OR CASH FLOWS.

Title: NOTE 2:SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 UNIFORM GUIDANCE, WHEREIN CERTAIN TYPES OF EXPENDITURES ARE NOT ALLOWABLE OR ARE LIMITED AS TO REIMBURSEMENT. De Minimis Rate Used: N Rate Explanation: THE ORGANIZATION HAS ELECTED NOT TO USE THE 10 PERCENT DE MINIMIS COST RATE ALLOWED UNDER THE UNIFORM GUIDANCE. EXPENDITURES REPORTED ON THE SCHEDULE ARE REPORTED 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.

Title: NOTE 3:CONTINGENT LIABILITIES 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 UNIFORM GUIDANCE, WHEREIN CERTAIN TYPES OF EXPENDITURES ARE NOT ALLOWABLE OR ARE LIMITED AS TO REIMBURSEMENT. De Minimis Rate Used: N Rate Explanation: THE ORGANIZATION HAS ELECTED NOT TO USE THE 10 PERCENT DE MINIMIS COST RATE ALLOWED UNDER THE UNIFORM GUIDANCE. THE ORGANIZATION PARTICIPATES IN A NUMBER OF FEDERALLY ASSISTED PROGRAMS. THESE PROGRAMS ARE AUDITED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS AND THE UNIFORM GUIDANCE, IF APPLICABLE, IN ACCORDANCE WITH THE REQUIRED LEVELS OF FEDERAL FINANCIAL ASSISTANCE. AUDITS OF PRIOR YEARS HAVE NOT RESULTED IN ANY SIGNIFICANT DISALLOWED COSTS. ADDITIONALLY, THE GRANT PROGRAMS ARE SUBJECT TO AUDITS BY THE GRANTING AUTHORITY, THE PURPOSE OF WHICH IS TO ENSURE COMPLIANCE WITH CONDITIONS PRECEDENT TO THE GRANTING OF FUNDS. MANAGEMENT BELIEVES THAT ANY LIABILITY FOR REIMBURSEMENT WHICH MAY ARISE AS THE RESULT OF AUDITS OF GRANT FUNDS WOULD NOT BE MATERIAL.

Title: NOTE 4: RELATIONSHIP TO FEDERAL FINANCIAL REPORTS 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 UNIFORM GUIDANCE, WHEREIN CERTAIN TYPES OF EXPENDITURES ARE NOT ALLOWABLE OR ARE LIMITED AS TO REIMBURSEMENT. De Minimis Rate Used: N Rate Explanation: THE ORGANIZATION HAS ELECTED NOT TO USE THE 10 PERCENT DE MINIMIS COST RATE ALLOWED UNDER THE UNIFORM GUIDANCE. AMOUNTS REPORTED IN THE ACCOMPANYING SCHEDULE MAY DIFFER WITH THE AMOUNTS REPORTED IN THE RELATED FEDERAL FINANCIAL REPORTS FILED WITH THE GRANTOR AGENCIES DUE TO ACCRUALS OR ADJUSTMENTS POSTED TO THE BOOKS AFTER THE SUBMISSION OF THE ORIGINAL REPORTS.

Title: NOTE 5: INDIRECT COSTS 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 UNIFORM GUIDANCE, WHEREIN CERTAIN TYPES OF EXPENDITURES ARE NOT ALLOWABLE OR ARE LIMITED AS TO REIMBURSEMENT. De Minimis Rate Used: N Rate Explanation: THE ORGANIZATION HAS ELECTED NOT TO USE THE 10 PERCENT DE MINIMIS COST RATE ALLOWED UNDER THE UNIFORM GUIDANCE. THE ORGANIZATION HAS ELECTED NOT TO USE THE 10 PERCENT DE MINIMIS INDIRECT COST RATE ALLOWED UNDER THE UNIFORM GUIDANCE.

Title: NOTE 6: SUBRECIPIENTS 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 UNIFORM GUIDANCE, WHEREIN CERTAIN TYPES OF EXPENDITURES ARE NOT ALLOWABLE OR ARE LIMITED AS TO REIMBURSEMENT. De Minimis Rate Used: N Rate Explanation: THE ORGANIZATION HAS ELECTED NOT TO USE THE 10 PERCENT DE MINIMIS COST RATE ALLOWED UNDER THE UNIFORM GUIDANCE. A PORTION OF THE FEDERAL EXPENDITURES PRESENTED IN THIS SCHEDULE WAS PROVIDED TO SUBRECIPIENTS BY THE ORGANIZATION. THAT PORTION HAS BEEN IDENTIFIED IN A SEPARATE COLUMN ON THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS.