Notes to SEFA
Title: 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 contained in the Uniform Guidance, Cost Principles for Non-Profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Community Residences, Inc. and Outreach, Inc. have not recovered their indirect costs using the 10% de minimis indirect cost rate as provided under the Uniform Guidance. The amount presented on the schedule for COVID-19 - Provider Relief Fund (PRF), Assistance Listing No. 93.498, for the year ended June 30, 2022 includes $800,418 of PRF funds received from the U.S. Department of Health and Human services (HHS) between July 1, 2020 and December 31, 2020. In accordance with guidance from HHS, these amounts are presented as period 2 in the HHS PRF Reporting Poral. Of the $800,418, $30,656 was recognized as operating revenue in Community Residences, Inc.'s and Outreach, Inc.'s consolidated financial statements for the year ended June 30, 2021 and the remainder was recognized as operating revenue in the consolidated financial statements for the year ended June 30, 2022.
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 (the schedule) includes the federal award activity of Community Residences, Inc. and Outreach, Inc. under programs of the Federal Government for the year ended June 30, 2022. 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), with the exception of the COVID-19 - Provider Relief Fund (PRF), Assistance Listing Number 93.498, which is presented in accordance with program requirements, as described below. Because the schedule presents only a selected portion of the operations of Community Residences, Inc. and Outreach, Inc. it is not intended to and does not present the financial position, changes in net assets or cash flows of Community Residences, Inc. and Outreach, Inc.