Audit 41752

Accounting Policies: Basis of Presentation:The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federalaward activity of the Boys & Girls Clubs of Deep East Texas, Inc. (the Corporation) underprograms of the federal government for the year ended December 31, 2022. The information on thisSchedule is prepared in accordance with the requirements of Title 2 U.S. Code of FederalRegulations Part 200, Uniform Administrative Requirements, Cost Principles, and AuditRequirements for Federal Awards (Uniform Guidance). Because the Schedule presents only aselected portion of the operations of the Corporation, it is not intended to and does not present thefinancial position, changes in net assets, or cash flows of the Corporation.Summary of Significant Accounting Policies:Expenditures are reported on the Schedule on the accrual basis of accounting.Federal grant funds are considered to be earned when all eligibility requirements have been met.Any excess of revenues or expenditures is recorded as unearned revenues or accounts receivable,respectively.The disbursement of funds received under federal grant programs generally requires compliancewith terms and conditions specified in the grant agreements and is subject to audit by the grantoragencies. Any disallowed claims resulting from such audits could become a liability of theCorporation. In the opinion of management, such disallowed claims, if any, will not have a materialeffect on any of the financial statements or on the overall financial position of the Corporation atDecember 31, 2022.The Corporation has elected not to use the 10-percent de minimis indirect cost rate as allowed underthe Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.