Audit 37914

Accounting Policies: NOTE 1- BASIS OF PRESENTATIONThe accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of the DC Federal Credit Union (the Credit Union) under programs of the federal government and is presented on the accrual basis of accounting for the year ended December 31, 2022. The amounts reported as federal expenditures were obtained from the Credit Unions records.The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) 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 Credit Union, it is not intended to and does not present the financial position, changes in stockholders equity or cash flows of the Credit Union. As a result, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of the basicfinancial statements. For purposes of the Schedule, federal awards include all grants, contracts, and similar agreements entered into directly between the Credit Union and agencies and departments of the federal government. All of the Credit Unions federal awards were in the form of cash assistance for the year ended December 31, 2022. The Credit Union had no federally funded insurance programs or loan guarantees during the year ended December 31, 2022.NOTE 2- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations (CFR) Part 200, UniformAdministrative Requirements, Costs Principles and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Credit Union has elected not to use the 10% de minimus indirect cost rate allowed under the Uniform Guidance.NOTE 3- SUBRECIPIENTSDuring the year ended December 31, 2022, the Credit Union did not provide any awards to subrecipients.NOTE 4- COMMITMENTS AND CONTINGENCIESThe Credit Union receives a portion of its revenue from U.S. Government funded contracts and grants, which are subject to audit. The final determination of amounts received under these programs is generally based upon allowable costs reported to and subject to audit by supporting agencies. A contingency exists for the Credit Union to refund any amounts received in excess of allowable costs. Management believes that disallowed costs, if any, will be immaterial to the financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.