Audit 42179

Accounting Policies: NOTE A - BASIS OF PRESENTATIONThe accompanying schedule of expenditures of federal awards includes the federal award activity of DESHA AREA DIRECTIONS, INC. and is presented on the accrual basis of accounting. 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). Because the Schedule presents only a selected portion of the operations of DESHA AREA DIRECTIONS, INC., it is not intended to and does not present the financial position, changes in net assets, or cash flows of DESHA AREA DIRECTIONS, INC.NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures 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, wherein certain types of expenditures are not allowable or are limited as to reimbursement. DESHA AREA DIRECTIONS, INC. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.NOTE C U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT CAPITAL ADVANCEDESHA AREA DIRECTIONS, INC. has received a U.S. Department of Housing and Urban Development Capital Advance under Section 202 of the Housing Act of 1959. The Capital Advance balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. DESHA AREA DIRECTIONS, INC. received no additional advances during the year. The balance of the Capital Advance outstanding at June 30, 2022 totaled $1,382,400. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.