Title: Note 1 - Basis of Presentation
Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards are presented on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in OMB’s Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”). Under federal cost principles, certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: The Agency has elected not to use the 10-percent de minimis indirect cost rate allowed under
the Uniform Guidance as it has a negotiated indirect cost rate.
The accompanying schedule of expenditures of federal awards includes the federal grant activity of
Encore Community Services and Affiliates, (the “Agency”) under programs of the federal government
for the year ended June 30, 2023. It does not include programs of subsidiaries referred to in Note 5.
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”). Because the schedule presents
only a selected portion of the operations of the Agency, it is not intended to and does not present the
financial position, changes in net assets or cash flows of the Agency.
Title: Note 2 - Summary of Significant Accounting Policies
Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards are presented on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in OMB’s Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”). Under federal cost principles, certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: The Agency has elected not to use the 10-percent de minimis indirect cost rate allowed under
the Uniform Guidance as it has a negotiated indirect cost rate.
Expenditures reported on the schedule of expenditures of federal awards are presented on the
accrual basis of accounting. Such expenditures are recognized following the cost principles contained
in OMB’s Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards
(“Uniform Guidance”). Under federal cost principles, certain types of expenditures are not allowable
or are limited as to reimbursement. Pass-through entity identifying numbers are presented where
available.
Title: Note 3 - Indirect Cost Rate
Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards are presented on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in OMB’s Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”). Under federal cost principles, certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: The Agency has elected not to use the 10-percent de minimis indirect cost rate allowed under
the Uniform Guidance as it has a negotiated indirect cost rate.
The Agency has elected not to use the 10-percent de minimus indirect cost rate allowed under the
Uniform Guidance.
Title: Note 4 - Sub Recipients
Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards are presented on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in OMB’s Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”). Under federal cost principles, certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: The Agency has elected not to use the 10-percent de minimis indirect cost rate allowed under
the Uniform Guidance as it has a negotiated indirect cost rate.
There were no amounts provided to subrecipients from federal awards received during the year ended
June 30, 2024.
Title: Note 5 - Capital Advances and Rental Assistance of Subsidiaries
Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards are presented on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in OMB’s Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”). Under federal cost principles, certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: The Agency has elected not to use the 10-percent de minimis indirect cost rate allowed under
the Uniform Guidance as it has a negotiated indirect cost rate.
Encore West Residence Housing Development Fund Corporation (“Encore West HDFC”), an affiliate,
which is included in the consolidated financial statements of the Agency, has received a HUD capital
advance and project rental assistance under Section 202 Supportive Housing for the Elderly program.
The awards are included in the federal expenditures presented in the schedule of expenditures of
federal awards of Encore West HDFC. The awards are not presented on the Agency’s schedule of
expenditures of federal awards as they were audited as part of Encore West Residence’s Single Audit.
The Agency received no additional loans or capital advances during the year. The balance of the
capital advance outstanding at June 30, 2024 was $13,262,100. The total amount of the project rental
assistance for the year ended June 30, 2024 was $630,218.