Audit 44985

Accounting Policies: 1. General Information:The accompanying Schedule of Expenditures of Federal and State Awards includes the federaland state awards activity of EmPoWER Somerset, Inc., under programs of the federal and stategovernment for the year ended December 31, 2022. All financial awards received directly fromfederal and state agencies as well as financial awards passed through other governmentalagencies or not-for-profit organizations are included on the schedule. The information in theSchedule is presented 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 EmPoWER Somerset, Inc., it is not intended to and does notpresent the financial position, changes in net assets, or cash flows of EmPoWER Somerset, Inc.2. Basis of Accounting:The accompanying Schedule of Expenditures of Federal and State Awards is presented using theaccrual basis of accounting. The amounts recognized following the cost principles contained inUniform Administrative Requirements, Cost Principles, and Audit Requirements for FederalAwards and/or OMB Circular A-122, Cost Principles for Non- profit Organizations wherecertain types of expenditures are not allowable or are limited as to reimbursement. If present,negative amounts reflected in the schedule represent adjustments or credit resulting from thenormal course of business to amounts reported as expenditures in prior years. The amountsreported in this schedule as expenditures may differ from certain financial reports submitted tofederal and state funding agencies due to those reports being submitted on either a cash ormodified accrual basis of accounting.3. Relationship to Basic Financial Statements:Federal and State Award expenditures are reported on the Statement of Functional Expenses asprogram services. In certain programs, the expenditures reported in the financial statements maydiffer from the expenditures reported in the Schedule of Expenditures of Federal and StateAwards due to program expenditures exceeding grant or contract budget limitations, matching orin-kind contributions or capitalization policies required under accounting principles generallyaccepted in the United States of America. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.