Audit 48743

Accounting Policies: Note 1 Basis of PresentationThe accompanying schedule of expenditures of federal and state awards of Serenity Recovery Centers, Inc. is presented on the accrual basis of accounting. The information in the schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the presentation of the basic financial statements.The difference in federal awards per the schedule and federal awards per the statements of activities is due to Provider Relief Fund revenue recognized for the year ended June 30,2021 totaling $269,061 that is required to be reported on the schedule according to the Provider Relief Fund Reporting schedule for the year ended June 30, 2022. Additionally, revenue recognized for the year ended June 30, 2022, includes $60,233 of Provider Relief Funding that will be reported in the schedule for the year ended June 30, 2023. The difference of these two amounts ($208,858) represents the difference in federal awards per the schedule and federal awards per the statement of activities for the year ended June 30, 2022.Note 2 Basis of AccountingExpenditures reported in 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. De Minimis Rate Used: Y Rate Explanation: Note 3 Indirect Cost RateSerenity Recovery Centers, Inc. uses the 10% de minimus indirect cost rate as allowed under the Uniform Guidance for direct funding grants. Actual indirect costs are allocated to pass-through grants as allowed by the grant contract with the State of Tennessee.