Audit 4950

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures are reported on the Schedule using 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. The expenditures for the Head Start program are based on program regulations for when an obligation is incurred, which differs from generally accepted accounting principles in that services from contracts and certain property acquisitions are incurred when there is a written commitment to obtain the services or property rather than when the services or property are received, provided that the obligations are liquidated within 90 days. Pass through entity identifying numbers are presented where available. PCAC has elected not to use the 10 percent de minimis indirect cost rate under Section 200.502 and the applicable cost principles used per 2 CFR 200. All expenditures of the Head Start program are considered direct costs. De Minimis Rate Used: N Rate Explanation: PCAC has elected not to use the 10 percent de minimis indirect cost rate under Section 200.502 and the applicable cost principles used per 2 CFR 200. All expenditures of the Head Start program are considered direct costs. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) of Placer Community Action Council, Inc., (PCAC) includes the grant activity of PCAC under programs of the federal government for the year ended January 31, 2022. The information in this Schedule is presented in accordance with 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). Because the Schedule presents only a selected portion of the operations of PCAC, it is not intended to and does not present the financial position, changes in net assets, or cash flows of PCAC.