Audit 350958

Title: NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Basis of presentation – The schedule of expenditures of federal awards is prepared on the accrual basis of accounting. 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). Federal expenditures include allowable costs funded by federal grants. Allowable costs are subject to the cost principles of the Uniform Guidance and include costs that are recognized as expenses in Phoenix Houses of Texas’ financial statements in conformity with generally accepted accounting principles. Phoenix Houses of Texas has not elected to use the 10% de minimis cost rate for indirect costs, but uses its approved indirect cost rate from the U. S. Department of Health and Human Services. Phoenix Houses of Texas does not have any subrecipients. Because the schedule presents only a selected portion of the operations of Phoenix Houses of Texas, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Phoenix Houses of Texas. De Minimis Rate Used: N Rate Explanation: The Auditee has not elected to use the 10% de minimis cost rate for indirect costs. Basis of presentation – The schedule of expenditures of federal awards is prepared on the accrual basis of accounting. 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). Federal expenditures include allowable costs funded by federal grants. Allowable costs are subject to the cost principles of the Uniform Guidance and include costs that are recognized as expenses in Phoenix Houses of Texas’ financial statements in conformity with generally accepted accounting principles. Phoenix Houses of Texas has not elected to use the 10% de minimis cost rate for indirect costs, but uses its approved indirect cost rate from the U. S. Department of Health and Human Services. Phoenix Houses of Texas does not have any subrecipients. Because the schedule presents only a selected portion of the operations of Phoenix Houses of Texas, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Phoenix Houses of Texas.