Notes to SEFA
Accounting Policies: 1.GENERAL INFORMATIONThe accompanying schedule of expenditures of federal awards and state financial assistance presents the activities in the financial assistance programs of CPC Behavioral Healthcare, Inc. (the Agency). All financial assistance received directly from federal and state agencies is included on the schedule. Because the schedule presents only a selected portion of the operations of CPC Behavioral Healthcare, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of CPC Behavioral Healthcare, Inc.2.BASIS OF ACCOUNTINGThe accompanying schedule of expenditures of federal awards and state financial assistance is presented using the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and NJ Circular Letter 15-08-OMB, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The amounts reported in this schedule as expenditures may differ from certain financial reports submitted to governmental funding agencies due to those reports being submitted on either a cash or modified accrual basis of accounting.3.RELATIONSHIP TO BASIC FINANCIAL STATEMENTSFederal awards and state financial assistance expenditures are reported on the statements of functional expenses as program expenses. The expenditures reported in the basic financial statements may differ from the expenditures reported in the schedule of expenditures of federal awards and state financial assistance due to program expenditures exceeding grant or contract budget limitations, matching or in-kind contributions or capitalization policies required under accounting principles generally accepted in the United States of America.4.INDIRECT COSTSThe Agency has not previously received a negotiated indirect cost rate nor has it elected to use the 10% de minimis indirect cost rate allowable under Uniform Guidance.5.SUBRECIPIENTSDuring the year ended June 30, 2022, the Agency did not pass through any federal awards or state financial assistance to any subrecipients.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.