Audit 45697

Accounting Policies: NOTE 1 GENERAL The accounting policies and presentation of the accompanying schedule of expenditures of federal awards of First Step of Sarasota, Inc. (First Step) have been designed to conform with U.S. generally accepted accounting principles applicable to non-profit organizations, including the reporting and compliance requirements of the Single Audit Act of 1984, the Single Audit Act Amendments of 1996, and Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (federal awards). All federal awards received directly from federal agencies, as well as federal awards passed through other governmental agencies, are included in the schedule. NOTE 2 BASIS OF ACCOUNTING The accompanying schedule of expenditures of federal awards is presented using the accrual basis of accounting. NOTE 3 CONTINGENCIES Grant monies received and disbursed by First Step are for specific purposes and are subject to review by grantor agencies. Such audits may result in requests for reimbursement due to disallowance of expenditures. Based on prior experience, First Step does not believe that such disallowances, if any, would have a material effect on the financial position of First Step. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate.