Audit 44164

Accounting Policies: NOTE A - BASIS OF PRESENTATIONThe accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal awardactivity of Two Feathers Native American Family Services (the Organization) under programs of the federalgovernment for the year ended June 30, 2022. The information in this Schedule is presented in accordance withthe requirements of Title 2 U. S. Code of Federal Regulations (CFR) Part 200, Uniform AdministrativeRequirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because theSchedule presents only a selected portion of the operations of the Organization, it is not intended to and does notpresent the financial position, changes in net assets or cash flows for the Organization.For purposes of the Schedule, federal awards include all grants and contracts entered into directly between theOrganization, agencies, and departments of the federal government. The awards are classified into majorprogram categories in accordance with the provisions of the Uniform Grant Guidance.NOTE B - BASIS OF ACCOUNTINGExpenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures arerecognized following the cost principles contained in Title 2 U. S. Code of Federal Regulations (CFR) Part 200,Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UniformGuidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negativeamounts shown on the Schedule represent adjustments or credits made in the course of business to amountsreported as expenditures in prior years.NOTE C - INDIRECT COST RATEThe Organization elected to use the ten percent federal de minimis cost rate allowed under Title 2 U. S. Code ofFederal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and AuditRequirements for Federal Awards (Uniform Guidance) when applicable.NOTE D - RELATIONSHIP OF SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS TOFINANCIAL STATEMENTSConsistent with managements policy, federal awards and other grants are recorded in respective revenuecategories. As result, the amount of total federal awards expended on the Schedule does not agree to total grantrevenue on the Statement of Operations and Changes in Net Assets as presented in the Organizations report onthe audited financial statements. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate.