Audit 358494

Title: Note 3 Accounting Policies: The accompanying Schedule of Expenditures of Federal and State Awards includes the federal grant activity of Delta  Community Action Foundation, Inc. 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 for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of Delta Community Action Foundation, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flow of Delta Community Action Foundation, Inc. De Minimis Rate Used: N Rate Explanation: 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, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Delta Community Action Foundation, Inc. has elected not to use the 10‐percent de minimis indirect cost rate allowed under the Uniform Guidance. During the year ended September 30, 2024, the Organization expended $534,641 in Head Start Stabilization funds (ALN # 93.575) directly from the United States Department of Health and Human Services. The Stabilization monies are not reported on the schedule because these funds are not subject to the reporting requirements contained in the Uniform Guidance for the year ended September 30, 2024.