Notes to SEFA
The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of the HOPE Center of Orange County (“Center”) 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 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 the Center, it is not intended to and does not present the financial position or changes in net assets of the Center.
Expenses reported in the Schedule are reported on the accrual basis of accounting, in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). The accrual basis of accounting recognizes revenues in the accounting period in which revenues are earned regardless of when cash is received and recognizes expenses in the accounting period when they are incurred, regardless of when it is disbursed. Such expenses are recognized according to the cost principles contained in the Uniform Guidance, wherein certain types of expenses are not allowable or are limited as to reimbursement. During the current year under audit, the Center transitioned from cash basis to full accrual basis of accounting. As a result, expenses incurred in prior years but not reported under the cash basis were adjusted and accrued in the current year. The SEFA includes these adjustments to accurately reflect all incurred expenses. The total adjustment amount is $54,073.
The Center has not elected to use the 10-percent de minimis indirect cost rate.