Audit 49636

Accounting Policies: 1. Summary of Significant Accounting Policies: Basis of Presentation: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) presents the activity of all federal award programs administered by Child and Family Services of Erie County (the Agency), an entity as defined in Note 1 to the Agencys financial statements. Federal awards received directly from federal agencies, as well as federal awards passed through from other entities, are included on the Schedule. Basis of Accounting: The Agency uses the accrual basis of accounting for federal programs consistent with the financial statements. The amounts reported as federal expenditures generally were obtained from the appropriate financial reports for the applicable programs and periods. The amounts reported in these financial reports are prepared from records maintained for each program, which are periodically reconciled to the Agencys financial reporting system. Provider Relief Fund and American Rescue Plan (ARP) Rural Distributions Assistance Listing Number 93.498: For U.S. Department of Health and Human Services (HHS) awards related to the Provider Relief Fund and ARP Rural Distribution (PRF) program, HHS has indicated amounts on the Schedule be reported corresponding to reporting requirements of Health Resources and Services Administration (HRSA) PRF Reporting Portal. Payments from HHS for PRF are assigned to Payment Received Periods based upon the date each payment from PRF was received. Each period has a specified Period of Availability and timing of reporting requirements. Entities report on the HRSA PRF Reporting Portal after each periods deadline to use the funds. The Schedule includes $423,021 received from HHS from July 1, 2020 through December 31, 2020 and are presented in accordance with guidance from HHS in Period 2. Amounts totaling $303,323 and $119,698 were recognized as grant income in the Agency's financial statements for the years ended June 30, 2022 and 2021. Due to PRF reporting requirements, these amounts are not the total PRF received and/or recognized as grant income in the year presented on the Schedule. Indirect Costs: Indirect costs and administrative allowances are set by New York State or Federal awarding agencies based upon contractual rates. As such, the Agency does not apply the 10% de minimis rate permitted by the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.