Audit 364892

Title: NOTE 1 - GENERAL INFORMATION Accounting Policies: NOTE 1 - GENERAL INFORMATION The accompanying Schedule of Expenditures of Federal Awards presents the activities in all federal financial assistance programs of Philadelphia FIGHT assistance received directly from federal agencies as well as federal financial assistance passed through other governmental agencies or non-profit organizations. NOTE 2 - BASIS OF ACCOUNTING The expenses in the accompanying Schedule of Expenditures of Federal Awards are presented using the accrual basis of accounting. The amounts reported in this schedule as expenditures may differ from certain financial reports submitted to federal funding agencies due to those reports being submitted on either a cash or modified accrual basis of accounting. NOTE 3 - RELATIONSHIP TO BASIC FINANCIAL STATEMENTS Federal awards expenditures are reported on the statement of functional expenses as program services. In certain programs, the expenditures reported in the basic financial statements may differ from the expenditures reported in the Schedule of Expenditures of Federal awards due to program expenditures exceeding grant or contract budget limitations which are not included as federal awards. De Minimis Rate Used: N Rate Explanation: PHILADELPHIA FIGHT USED ITS NEGOTIATED RATE, OR LOWER, DEPENDING ON THE CONTRACT The accompanying Schedule of Expenditures of Federal Awards presents the activities in all federal financial assistance programs of Philadelphia FIGHT assistance received directly from federal agencies as well as federal financial assistance passed through other governmental agencies or non-profit organizations.

Title: NOTE 2 - BASIS OF ACCOUNTING Accounting Policies: NOTE 1 - GENERAL INFORMATION The accompanying Schedule of Expenditures of Federal Awards presents the activities in all federal financial assistance programs of Philadelphia FIGHT assistance received directly from federal agencies as well as federal financial assistance passed through other governmental agencies or non-profit organizations. NOTE 2 - BASIS OF ACCOUNTING The expenses in the accompanying Schedule of Expenditures of Federal Awards are presented using the accrual basis of accounting. The amounts reported in this schedule as expenditures may differ from certain financial reports submitted to federal funding agencies due to those reports being submitted on either a cash or modified accrual basis of accounting. NOTE 3 - RELATIONSHIP TO BASIC FINANCIAL STATEMENTS Federal awards expenditures are reported on the statement of functional expenses as program services. In certain programs, the expenditures reported in the basic financial statements may differ from the expenditures reported in the Schedule of Expenditures of Federal awards due to program expenditures exceeding grant or contract budget limitations which are not included as federal awards. De Minimis Rate Used: N Rate Explanation: PHILADELPHIA FIGHT USED ITS NEGOTIATED RATE, OR LOWER, DEPENDING ON THE CONTRACT The expenses in the accompanying Schedule of Expenditures of Federal Awards are presented using the accrual basis of accounting. The amounts reported in this schedule as expenditures may differ from certain financial reports submitted to federal funding agencies due to those reports being submitted on either a cash or modified accrual basis of accounting.

Title: NOTE 3 - RELATIONSHIP TO BASIC FINANCIAL STATEMENTS Accounting Policies: NOTE 1 - GENERAL INFORMATION The accompanying Schedule of Expenditures of Federal Awards presents the activities in all federal financial assistance programs of Philadelphia FIGHT assistance received directly from federal agencies as well as federal financial assistance passed through other governmental agencies or non-profit organizations. NOTE 2 - BASIS OF ACCOUNTING The expenses in the accompanying Schedule of Expenditures of Federal Awards are presented using the accrual basis of accounting. The amounts reported in this schedule as expenditures may differ from certain financial reports submitted to federal funding agencies due to those reports being submitted on either a cash or modified accrual basis of accounting. NOTE 3 - RELATIONSHIP TO BASIC FINANCIAL STATEMENTS Federal awards expenditures are reported on the statement of functional expenses as program services. In certain programs, the expenditures reported in the basic financial statements may differ from the expenditures reported in the Schedule of Expenditures of Federal awards due to program expenditures exceeding grant or contract budget limitations which are not included as federal awards. De Minimis Rate Used: N Rate Explanation: PHILADELPHIA FIGHT USED ITS NEGOTIATED RATE, OR LOWER, DEPENDING ON THE CONTRACT Federal awards expenditures are reported on the statement of functional expenses as program services. In certain programs, the expenditures reported in the basic financial statements may differ from the expenditures reported in the Schedule of Expenditures of Federal awards due to program expenditures exceeding grant or contract budget limitations which are not included as federal awards.