Notes to SEFA
Title: Note 2
Accounting Policies: The accompanying schedules of expenditures of federal awards and state financial assistance (the Schedules) includes the federal and state award activity of Mending Hearts, Inc. (the Organization) under programs of the Federal government and State of Tennessee for the year ended June 30, 2022. The information in this Schedules are presented in accordancewith 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) and the requirements of the Comptroller of the Currency of the State of Tennessee. Because the Schedules presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Organization.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Expenditures reported on the Schedules 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.