Audit 40772

Title: Note 2 Accounting Policies: The Schedule of Expenditures of Federal Awards has been prepared on the accrual basis of accounting. Revenues were adjusted to balance the expenditures incurred for each project. De Minimis Rate Used: N Rate Explanation: Family Services Incorporated has not elected to use the 10% de minimis indirect cost rate. An extensive compliance test, as required by the Single Audit Act of 1996, was performed on the Emergency Solutions Grant Program, which represents 45% of the total expenditures reflected on the Schedule of Expenditures of Federal Awards. The 20% test for a low-risk auditee was satisfied as follows: Emergency Solutions Grant Program 14.231 $1,313,126; Community Development Block Grant 14.218 $514,561; Crime Victim Assistance 16.575 $343,043; Provider Relief Funds 93.498 $235,000; Basic Center Grant 93.623 $223,189; Social Services Block Grant 93.667 $208,692; Continuum of Care Program 14.267 $60,517; Family Violence Prevention and Services 93.671 $16,922; Emergency Food and Shelter National Board Program 97.024 $13,738; Sexual Assault Services Formula Grant 16.017 $5,811; Emergency Food Assistance Program (Food Commodities) 10.569 $3,508; Preventative Health and Health Services Block Grant 93.758 $1,988. Total Expenditure of Federal Awards $2,940,095 X 20% = $588,019-Minimum Amount Which Must Be Tested. The Emergency Solutions Grant Program exceeds $588,019, and, therefore, represents the only program to which the specific compliance requirements were applied.