Notes to SEFA
Title: Basis of Presentation
Accounting Policies: Expenditures reported on the Schedule are presented on the accrual basis of accounting. Such expenditures arerecognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures arenot allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The accompanying Schedule of Expenditures of Federal Awards includes the federal program activity of the FormCommunities, Inc. and Subsidiary under programs of the federal government for the year ended December 31,2022. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code ofFederal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements forFederal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operation ofForm Communities, Inc. and Subsidiary it is not intended to and does not present the financial position, changes innet assets, or cash flows.