Audit 39417

Title: Contingencies Accounting Policies: Basis of Presentation-The Schedule of Expenditures of Federal Awards (the "Schedule") has been prepared from Health Projects Center's (the Organization) accounting records and is presented on the accrual basis of accounting in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Costs Principles, and Audit Requirements for Federal Awards ("Uniform Guidance"). The purpose of the Schedule is to present a summary of those activities of the Organization for the year ended June 30, 2022 which have been financed by federal awards. Because the Schedule presents only the federal awards activity of the Organization, it is not intended to, and does not present the financial position, changes in net assets, or cash flows of the Organization. Expenditures- Expenditures reported on the Schedule are presented using the accrual basis of accounting in conformity with generally accepted accounting principles and follow the cost principles contained in Uniform Guidance, wherein certain types of expenditures are allowable or are limited as to reimbursement. Indirect Cost Rate-The Organization has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The Organization uses the rates established directly with the respective federal agency. Relationship to Federal Financial Reports -Grant expenditure reports for the year ended June 30, 2022, which have been submitted to grantor agencies, will, in some cases, differ from amounts disclosed herein. The reports prepared for grantor agencies are typically prepared at a later date and often reflect refined estimates of the year-end accruals. The reports will agree at termination of the grant as the discrepancies, if any, are for timing difference. Assistance Listing Numbers- Pass-through awards have been presented bypass-through entity, Assistance Listing number and grant award name or by the Organizations identifier. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Under the terms of federal and state grants, additional audits may be requested by the grantor agencies, and certain costs may be questioned as not being appropriate expenditures under the terms of the grants. Such audits could lead to a request for reimbursement to the grantor agencies.