Title: Note 3: RELATIONSHIP OF THE SCHEDULE TO PROGRAM FINANCIAL REPORTS
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards and State Financial Assistance (theSchedule) summarizes the federal expenditures of South Central Human Resource Agency (theAgency) under programs of the federal government for the year ended June 30, 2022. Theamounts reported as federal expenditures were obtained from the Agencys general ledger.Because the Schedule presents only a selected portion of the operations of the Agency, it is notintended to and does not present the financial position and changes in net position of the Agency.For purposes of the Schedule, federal awards include all grants, contracts, and similar agreementsentered into directly with the federal government and other pass through entities. The Agency hasobtained Assistance Listing Numbers (ALN) to ensure that all programs have been identified in theSchedule. AL numbers have been appropriately listed by applicable programs. Federal programswith different AL numbers that are closely related because they share common compliancerequirements are defined as a cluster by the Uniform Guidance. Three clusters are separatelyidentified in the Schedule and are the following:ClustersHead Start/Early Head Start (ALN 93.600) is reported as the Head Start Cluster, the FosterGrandparent Program (ALN 94.011) is reported as the Foster Grandparent/Senior CompanionCluster and the Emergency Food Assistance Program (ALN 10.568 and 10.569) is reported as theFood Distribution Cluster in the Schedule.
De Minimis Rate Used: N
Rate Explanation: The Agency has not elected to use the 10% de Minimis cost rate for the year ended June 30, 2022.
The amounts reflected in the financial reports submitted to the awarding Federal, State and/orpass-through agencies and the Schedule may differ. Some of the factors that may account for anydifference include the following:? The Agencys fiscal year end may differ from the program's year end.? Accruals recognized in the Schedule, because of year-end procedures, may not be reportedin the program financial reports until the next program reporting period.? Fixed asset purchases and the resultant depreciation charges are recognized as fixed assetsin the Agency's financial statements and as expenditures in the program financial reports.
Title: Note 4: FEDERAL PASS-THROUGH FUNDS
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards and State Financial Assistance (theSchedule) summarizes the federal expenditures of South Central Human Resource Agency (theAgency) under programs of the federal government for the year ended June 30, 2022. Theamounts reported as federal expenditures were obtained from the Agencys general ledger.Because the Schedule presents only a selected portion of the operations of the Agency, it is notintended to and does not present the financial position and changes in net position of the Agency.For purposes of the Schedule, federal awards include all grants, contracts, and similar agreementsentered into directly with the federal government and other pass through entities. The Agency hasobtained Assistance Listing Numbers (ALN) to ensure that all programs have been identified in theSchedule. AL numbers have been appropriately listed by applicable programs. Federal programswith different AL numbers that are closely related because they share common compliancerequirements are defined as a cluster by the Uniform Guidance. Three clusters are separatelyidentified in the Schedule and are the following:ClustersHead Start/Early Head Start (ALN 93.600) is reported as the Head Start Cluster, the FosterGrandparent Program (ALN 94.011) is reported as the Foster Grandparent/Senior CompanionCluster and the Emergency Food Assistance Program (ALN 10.568 and 10.569) is reported as theFood Distribution Cluster in the Schedule.
De Minimis Rate Used: N
Rate Explanation: The Agency has not elected to use the 10% de Minimis cost rate for the year ended June 30, 2022.
The Agency is also the sub-recipient of federal funds that have been subjected to testing and arereported as expenditures and listed as federal pass-through funds. Federal awards other than thoseindicated as pass-through are considered direct and will be designated accordingly.
Title: Note 5: BASIS OF ACCOUNTING
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards and State Financial Assistance (theSchedule) summarizes the federal expenditures of South Central Human Resource Agency (theAgency) under programs of the federal government for the year ended June 30, 2022. Theamounts reported as federal expenditures were obtained from the Agencys general ledger.Because the Schedule presents only a selected portion of the operations of the Agency, it is notintended to and does not present the financial position and changes in net position of the Agency.For purposes of the Schedule, federal awards include all grants, contracts, and similar agreementsentered into directly with the federal government and other pass through entities. The Agency hasobtained Assistance Listing Numbers (ALN) to ensure that all programs have been identified in theSchedule. AL numbers have been appropriately listed by applicable programs. Federal programswith different AL numbers that are closely related because they share common compliancerequirements are defined as a cluster by the Uniform Guidance. Three clusters are separatelyidentified in the Schedule and are the following:ClustersHead Start/Early Head Start (ALN 93.600) is reported as the Head Start Cluster, the FosterGrandparent Program (ALN 94.011) is reported as the Foster Grandparent/Senior CompanionCluster and the Emergency Food Assistance Program (ALN 10.568 and 10.569) is reported as theFood Distribution Cluster in the Schedule.
De Minimis Rate Used: N
Rate Explanation: The Agency has not elected to use the 10% de Minimis cost rate for the year ended June 30, 2022.
This Schedule was prepared on the modified accrual basis of accounting. The modified accrual basisdiffers from the full accrual basis of accounting in that expenditures for property and equipment areexpensed when incurred, rather than being capitalized and depreciated over their useful lives, andexpenditures for the principal portion of debt service are expensed when incurred, rather thanbeing applied to reduce the outstanding principal portion of debt, which conforms to the basis ofreporting to grantors for reimbursement under the terms of the Agencys federal grants.
Title: Note 6: CONTINGENCIES
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards and State Financial Assistance (theSchedule) summarizes the federal expenditures of South Central Human Resource Agency (theAgency) under programs of the federal government for the year ended June 30, 2022. Theamounts reported as federal expenditures were obtained from the Agencys general ledger.Because the Schedule presents only a selected portion of the operations of the Agency, it is notintended to and does not present the financial position and changes in net position of the Agency.For purposes of the Schedule, federal awards include all grants, contracts, and similar agreementsentered into directly with the federal government and other pass through entities. The Agency hasobtained Assistance Listing Numbers (ALN) to ensure that all programs have been identified in theSchedule. AL numbers have been appropriately listed by applicable programs. Federal programswith different AL numbers that are closely related because they share common compliancerequirements are defined as a cluster by the Uniform Guidance. Three clusters are separatelyidentified in the Schedule and are the following:ClustersHead Start/Early Head Start (ALN 93.600) is reported as the Head Start Cluster, the FosterGrandparent Program (ALN 94.011) is reported as the Foster Grandparent/Senior CompanionCluster and the Emergency Food Assistance Program (ALN 10.568 and 10.569) is reported as theFood Distribution Cluster in the Schedule.
De Minimis Rate Used: N
Rate Explanation: The Agency has not elected to use the 10% de Minimis cost rate for the year ended June 30, 2022.
Grant monies received and disbursed by the Agency are for specific purposes and are subject toreview by the grantor agencies. Such audits may result in requests for reimbursement due todisallowed expenditures. Based upon prior experience, management does not believe that suchdisallowance, if any, would have a material effect on the financial position of the Agency. As of June30, 2022, there were no material questioned or disallowed costs as a result of grant audits inprocess or completed.
Title: Note 7: NONCASH ASSISTANCE
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards and State Financial Assistance (theSchedule) summarizes the federal expenditures of South Central Human Resource Agency (theAgency) under programs of the federal government for the year ended June 30, 2022. Theamounts reported as federal expenditures were obtained from the Agencys general ledger.Because the Schedule presents only a selected portion of the operations of the Agency, it is notintended to and does not present the financial position and changes in net position of the Agency.For purposes of the Schedule, federal awards include all grants, contracts, and similar agreementsentered into directly with the federal government and other pass through entities. The Agency hasobtained Assistance Listing Numbers (ALN) to ensure that all programs have been identified in theSchedule. AL numbers have been appropriately listed by applicable programs. Federal programswith different AL numbers that are closely related because they share common compliancerequirements are defined as a cluster by the Uniform Guidance. Three clusters are separatelyidentified in the Schedule and are the following:ClustersHead Start/Early Head Start (ALN 93.600) is reported as the Head Start Cluster, the FosterGrandparent Program (ALN 94.011) is reported as the Foster Grandparent/Senior CompanionCluster and the Emergency Food Assistance Program (ALN 10.568 and 10.569) is reported as theFood Distribution Cluster in the Schedule.
De Minimis Rate Used: N
Rate Explanation: The Agency has not elected to use the 10% de Minimis cost rate for the year ended June 30, 2022.
Food commodities are expended when the food is distributed. The amount expended is based onfood commodity values provided by the State of Tennessee, Department of Agriculture. At June 30,2022, the Agency had food commodities totaling $1,068,502.
Title: Note 8: SUBRECIPIENTS
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards and State Financial Assistance (theSchedule) summarizes the federal expenditures of South Central Human Resource Agency (theAgency) under programs of the federal government for the year ended June 30, 2022. Theamounts reported as federal expenditures were obtained from the Agencys general ledger.Because the Schedule presents only a selected portion of the operations of the Agency, it is notintended to and does not present the financial position and changes in net position of the Agency.For purposes of the Schedule, federal awards include all grants, contracts, and similar agreementsentered into directly with the federal government and other pass through entities. The Agency hasobtained Assistance Listing Numbers (ALN) to ensure that all programs have been identified in theSchedule. AL numbers have been appropriately listed by applicable programs. Federal programswith different AL numbers that are closely related because they share common compliancerequirements are defined as a cluster by the Uniform Guidance. Three clusters are separatelyidentified in the Schedule and are the following:ClustersHead Start/Early Head Start (ALN 93.600) is reported as the Head Start Cluster, the FosterGrandparent Program (ALN 94.011) is reported as the Foster Grandparent/Senior CompanionCluster and the Emergency Food Assistance Program (ALN 10.568 and 10.569) is reported as theFood Distribution Cluster in the Schedule.
De Minimis Rate Used: N
Rate Explanation: The Agency has not elected to use the 10% de Minimis cost rate for the year ended June 30, 2022.
The Agency did not provide federal funds to subrecipients for the fiscal year ending June 30, 2022.
Title: Note 9: LOANS AND LOAN GUARNTEES
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards and State Financial Assistance (theSchedule) summarizes the federal expenditures of South Central Human Resource Agency (theAgency) under programs of the federal government for the year ended June 30, 2022. Theamounts reported as federal expenditures were obtained from the Agencys general ledger.Because the Schedule presents only a selected portion of the operations of the Agency, it is notintended to and does not present the financial position and changes in net position of the Agency.For purposes of the Schedule, federal awards include all grants, contracts, and similar agreementsentered into directly with the federal government and other pass through entities. The Agency hasobtained Assistance Listing Numbers (ALN) to ensure that all programs have been identified in theSchedule. AL numbers have been appropriately listed by applicable programs. Federal programswith different AL numbers that are closely related because they share common compliancerequirements are defined as a cluster by the Uniform Guidance. Three clusters are separatelyidentified in the Schedule and are the following:ClustersHead Start/Early Head Start (ALN 93.600) is reported as the Head Start Cluster, the FosterGrandparent Program (ALN 94.011) is reported as the Foster Grandparent/Senior CompanionCluster and the Emergency Food Assistance Program (ALN 10.568 and 10.569) is reported as theFood Distribution Cluster in the Schedule.
De Minimis Rate Used: N
Rate Explanation: The Agency has not elected to use the 10% de Minimis cost rate for the year ended June 30, 2022.
The Agency did not have any loans or loan guarantee programs required to be reported on theSchedule for the fiscal year ending June 30, 2022.
Title: Note 10: FEDERALLY FUNDED INSRUANCE
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards and State Financial Assistance (theSchedule) summarizes the federal expenditures of South Central Human Resource Agency (theAgency) under programs of the federal government for the year ended June 30, 2022. Theamounts reported as federal expenditures were obtained from the Agencys general ledger.Because the Schedule presents only a selected portion of the operations of the Agency, it is notintended to and does not present the financial position and changes in net position of the Agency.For purposes of the Schedule, federal awards include all grants, contracts, and similar agreementsentered into directly with the federal government and other pass through entities. The Agency hasobtained Assistance Listing Numbers (ALN) to ensure that all programs have been identified in theSchedule. AL numbers have been appropriately listed by applicable programs. Federal programswith different AL numbers that are closely related because they share common compliancerequirements are defined as a cluster by the Uniform Guidance. Three clusters are separatelyidentified in the Schedule and are the following:ClustersHead Start/Early Head Start (ALN 93.600) is reported as the Head Start Cluster, the FosterGrandparent Program (ALN 94.011) is reported as the Foster Grandparent/Senior CompanionCluster and the Emergency Food Assistance Program (ALN 10.568 and 10.569) is reported as theFood Distribution Cluster in the Schedule.
De Minimis Rate Used: N
Rate Explanation: The Agency has not elected to use the 10% de Minimis cost rate for the year ended June 30, 2022.
The Agency did not have any federally funded insurance required to be reported on the Schedulefor the fiscal year ending June 30, 2022.