Audit 355904

Accounting Policies: 1. Basis of Presentation The accompanying schedule of expenditures of federal and state awards includes the federal and State of Texas grant activity of Access Esperanza Clinics Inc. and is presented on the accrual basis of accounting and 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) and the State of Texas Uniform Grant Management Standards Chapter IV Texas State Single Audit Circular. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the financial statements. For purposes of this schedule, federal awards include both federal and state financial assistance received directly from a federal and state agency, as well as federal and state funds received indirectly by Access Esperanza Clinics from a non-federal and state agency or other organization. Only the portion of program expenditures reimbursable with such federal and state funds is reported in the accompanying schedule. Program expenditures in excess of the maximum federal or state reimbursement authorized or the portion of program expenditures that were funded with local or other non-federal or State of Texas funds are excluded from the accompanying schedule. Because the Schedule presents only a selected portion of the operations of Access Esperanza Clinics Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Access Esperanza Clinics Inc. 2. Summary of Significant Accounting Policies Expenditures - Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and State of Texas Singe Audit Circular wherein certain types of expenditures are not allowable or are limited to reimbursement. De Minimis Rate Used: N Rate Explanation: Access Esperanza Clinics has not elected to use the ten percent De Minimis indirect cost rate as allowed by the uniform guidance.