Audit 41985

Title: Note 3 - Other Accounting Policies: Note 2 - Significant Accounting PoliciesA. Reporting Entity - The accompanying schedule includes federal award programs administered by the State of Alabama for the fiscal year ended September 30, 2022. State agencies that receive separate audits in accordance with the Uniform Guidance and federal awards received by state colleges and universities are not included in the schedule.B. Basis of Presentation - The information in the accompanying Schedule of Expenditures of Federal Awards is presented in accordance with the requirements of Title 2 of the U. S. Code of Federal Regulations Part 200 (Uniform Guidance). 1. Federal Financial Assistance - Pursuant to the Single Audit Act Amendments of 1996 and the Uniform Guidance, federal financial assistance is defined as assistance that non-federal entities receive or administer in the form of grants, loans, loan guarantees, property (including donated surplus property), cooperative agreements, interest subsidies, insurance, food commodities, direct appropriations, and other assistance.C. Basis of Accounting - The information presented in the Schedule of Expenditures of Federal Awards is presented on the cash basis of accounting, which is consistent with the other federal grant reports. Under this basis, expenditures are recorded when paid, and revenues are recognized when received. Such expenditures are recognized following, as applicable, either the cost principles in Office of Management and Budget Circular A-87, Cost Principles for State, Local and Indian Tribal Governments, or the cost principles contained in Title 2 U. S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement. Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements. D. Expenditures and Expenses - When monies are received by one state agency and transferred to another state agency either for final expenditure or as a reimbursement for services, the federal financial assistance is reflected in the primary receiving/expending state agency's accounts. This is to avoid duplication and the overstatement of the aggregate level of federal financial assistance expended by the State of Alabama. De Minimis Rate Used: Both Rate Explanation: E. De Minimis Indirect Cost Rate - The State of Alabama elected to use the 10-percent de minimis indirect cost rate as allowed in the Uniform Guidance for the following federal programs:a.ALN #10.934 Feral Swine Eradication and Control Pilot Programb.ALN #45.309 Museum Grants for African American History and Culture Note 3 - Other A. Commodities included in the National School Lunch Program (ALN #10.555), Summer Food Service Program for Children (ALN #10.559), Commodity Supplemental Food Program (ALN #10.565), and the Emergency Food Assistance Program (ALN #10.569) are included in the definition of federal financial assistance for the purpose of the accompanying schedule. Commodities, totaling $72,109,016 were reported in accordance with GASB Statement Number 24 in the basic financial statements of the State of Alabama for the fiscal year ended September 30, 2022.B. During the fiscal year ended September 30, 2022, the Alabama Department of Public Health received $28,985,169 in cash rebates from infant formula manufacturers on sales of formula to participants in the Special Supplemental Nutrition Program for Women, Infants and Children (WIC) Program (ALN #10.557). Rebate contracts with infant formula manufacturers are authorized by 7 CFR 246.16(m) as a cost containment measure. Rebates represent a reduction of expenditures previously incurred for WIC food benefits costs. The rebate contracts allowed the Department to serve 38,207 more persons during the 2021-2022 fiscal year. This number is based on an average gross food package cost of $63.22. C. Total expenditures for the Unemployment Insurance Program (ALN #17.225) include state and federal amounts of $69,302,077 and $97,633,858 respectively. The state portion of expenditures includes regular unemployment compensation. The federal portion includes administrative costs and unemployment compensation for ex-service members, former federal employees, and extended benefits for eligible individuals who have exhausted their regular unemployment compensation.D. Donation of Federal Surplus Personal Property (ALN #39.003) is valued at 23.34% of the acquisition costs in accordance with a directive from the U. S. General Services Administration.E. Interest Income of $4,636.67 was earned on the Help America Vote Act Title I funds (ALN #90.404). Interest income of $140.58 was earned on Help America Vote Act Title II funds (ALN #90.401). These amounts, as well as proceeds from the sale or salvage of unused HAVA equipment of $9,030.04 (ALN#90.401), are reported as receipts on the schedule.F. Expenditures reported on the schedule include $6,039,696 of Social Security Administration reimbursements under the Rehabilitation Services - Vocational Rehabilitation Grants to States Program (ALN #84.126).G. The amount reported as expenditures for the Immunization Cooperative Agreements (ALN #93.268) includes the value of immunization vaccines received and distributed in the amount of $71,559,761 during the 2021-2022 fiscal year.