Audit 365619

Title: NOTE 1 - BASIS OF PRESENTATION Accounting Policies: EXPENDITURES REPORTED ON THE SCHEDULE ARE REPORTED ON THE ACCRUAL BASIS OF ACCOUNTING. SUCH EXPENDITURES ARE RECOGNIZED FOLLOWING THE COST PRINCIPLES CONTAINTED IN THE UNIFORM GUIDANCE, WHEREIN CERTAIN TYPES OF EXPENDITURES ARE NOT ALLOWABLE OR ARE LIMITED AS TO REIMBURSEMENT. PASS-THROUGH ENTITY IDENTIFY NUMBERS ARE PRESENTED WHERE AVALIABLE De Minimis Rate Used: N Rate Explanation: NEIGHBORHOODS HAS ELECTED NOT TO USE THE 10-PERCENT DE MIMIMIS INDIRECT COST RATE ALLOWED UNDER THE UNIFORM GUIDANCE THE ACCOMPANYING SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS ("SCHEDULE") INCLUDES THE FEDERAL AWARD ACTIVITY OF PHIPPS NEIGHBORHOODS, INC. ("NEIGHBORHOODS"), UNDER PROGRAMS OF THE FEDERAL GOVERNMENT FOR THE YEAR ENDED JUNE 30, 2024. THE INFORMATION IN THIS SCHEDULE IS PRESENTED IN ACCORDANCE WITH THE REQUIREMENTS OF TITLE 2 U.S. CODE OF FEDERAL REGULATIONS (CFR) PART 200, (UNIFORM GUIDANCE"). BECAUSE THE SCHEDULE PRESENTS ONLY A SELECTED PORTION OF THE OPERATIONS OF NEIGHBORHOODS, IT IS NOT INTENDED TO AND DOES NOT PRESENT THE FINANCIAL POSITION, CHANGES IN NET ASSETS, OR CASH FLOWS OF NEIGHBORHOODS. ALL FINANCIAL ASSISTANCE RECEIVED DIRECTLY FROM THE FEDERAL AGENCIES AS WELL AS FINANCIAL ASSITANCE PASSED THROUGH OTHER GOVERNMENT AGENCIES OR NONPROFIT ORGANIZAITONS IS INCLUDED ON THE SCHEDULE.