Audit 35942

Title: Additional Notes Accounting Policies: Basis of PresentationThe accompanying schedule of expenditures of federal awards (the Schedule) includes the federalaward activity of Community Health Center of Lubbock, Inc. under programs of the federal governmentfor the year ended December 31, 2022. The information in the Schedule is presented in accordance withthe requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform AdministrativeRequirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).Because the schedule presents only a selected portion of the operations of the Center, it is not intendedto and does not present the financial position, change in net assets, or cash flows of the Center.Summary of Significant Accounting Policies(A) Expenditures reported on the Schedule are reported on the accrual basis of accounting. Suchexpenditures are recognized following the cost principles contained in the Uniform Guidance,wherein certain types of expenditures are not allowed or are limited as to reimbursement.(B) Community Health Center of Lubbock, Inc. has not elected to use the 10 percent de minimusindirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Center records all support and expenses on the accrual basis of accounting for financial reporting purposes. Grant support is recognized when allowable costs are incurred.Accrued Revenue represents the excess of grant support earned over cash advances from grantors. The receivables are considered fully collectible. Grant advances represent cash received from grantors in excess of revenue earned.