Audit 353087

Title: Scope of Audit Accounting Policies: Expenditures reported on the Schedule are reported on the cash basis of accounting, while Pacific Islands Primary Care Association maintains its accounting records on the accrual basis of accounting. A reconciliation of the expenses is provided in the accompanying notes to the financial statements. Expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as reimbursement. Pacific Islands Primary Care Association recognizes contributions from the federal government when qualifying expenditures are incurred. De Minimis Rate Used: N Rate Explanation: Expenditures are directly attributable to the purpose of the grant. Expenditures not related to the grant purpose is funded separately. Pacific Islands Primary Care Association (Organization) is a nonprofit organization formed in the State of Hawaii on July 15, 2004. Pacific Islands Primary Care Association has been designated by the United States Department of Health and Human Services’ Health Resources and Services Administration as a grantee for federal grants that further the purpose of furthering the goals of the Organization to enhance the capabilities of health centers in delivering comprehensive, high-quality primary health care.

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the cash basis of accounting, while Pacific Islands Primary Care Association maintains its accounting records on the accrual basis of accounting. A reconciliation of the expenses is provided in the accompanying notes to the financial statements. Expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as reimbursement. Pacific Islands Primary Care Association recognizes contributions from the federal government when qualifying expenditures are incurred. De Minimis Rate Used: N Rate Explanation: Expenditures are directly attributable to the purpose of the grant. Expenditures not related to the grant purpose is funded separately. The accompanying schedule of expenditures of federal awards includes the federal grant activity of Pacific Islands Primary Care Association and is presented 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 Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements of Federal Awards. Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements.

Title: Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on the Schedule are reported on the cash basis of accounting, while Pacific Islands Primary Care Association maintains its accounting records on the accrual basis of accounting. A reconciliation of the expenses is provided in the accompanying notes to the financial statements. Expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as reimbursement. Pacific Islands Primary Care Association recognizes contributions from the federal government when qualifying expenditures are incurred. De Minimis Rate Used: N Rate Explanation: Expenditures are directly attributable to the purpose of the grant. Expenditures not related to the grant purpose is funded separately. Basis of Accounting Expenditures reported on the Schedule are reported on the cash basis of accounting, while Pacific Islands Primary Care Association maintains its accounting records on the accrual basis of accounting. A reconciliation of the expenses is provided in the accompanying notes to the financial statements. Expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as reimbursement. Pacific Islands Primary Care Association recognizes contributions from the federal government when qualifying expenditures are incurred. Indirect Costs Pacific Islands Primary Care Association did not elect to use indirect costs for the grants. Matching Costs Pacific Islands Primary Care Association was not obligated to set up a matching fund for the grants awarded.