Audit 37342

Title: General Accounting Policies: Basis of Accounting The accompanying Schedule of Expenditures of Federal and Schedule ofExpenditures of State Awards are presented using the accrual basis of accounting. The informationin this schedule is presented in accordance with the requirements of the Uniform Guidance, Audits ofStates, Local Governments and Non-Profit Organizations. Therefore, some amounts presented inthis schedule may differ from amounts presented in or used in the preparation of the general-purposefinancial statements.The Organization did not elect to use the 10% de minimis indirect cost rate.Revenue Recognition Federal award programs are reported in the Organizations financialstatement as follows:$ 1 0,192,731 Total U.S. Department of Health and Human Services2 ,006,347 Total Expenditures of State Awards(330,834) Less: Texas Department of Family and Protective Services Contracts(366,426) Less: U.S. Department of Justice$ 1 1,501,818 Total Federal and State Grant Revenue per the Statement of Activities$ 366,426 Total U.S. Department of Justice330,834 Residential Child-Care Contract13,530 Residential Child-Care Contract Payments Received After Closeout$ 710,790 Total Federal and State Contract Services per the Statement of Activities De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying Schedule of Expenditures of Federal and State Awards presents the federal andstate grant activity for the Organization. The reporting entity is defined in Note 1 to the basicfinancial statements.