Audit 49677

Title: Loan/loan guarantee outstanding balances Accounting Policies: NOTE 1 GENERAL: The accompanying schedule of expenditures of federal awards (SEFA) includes the federal, state county and city award activity of Rainbow Services, Ltd. (the Organization) under programs of the federal, state, county, and city government for the year ended June 30, 2022. The information in the SEFA is presented in accordance with the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States of America, and the audit 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 SEFA 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 position, or cash flow of the Organization. Federal awards received directly from federal agencies as well as federal awards passed through state and local agencies, state awards, count awards, and city awards are included in the SEFA.NOTE 2 BASIS OF ACCOUNTING: The SEFA is presented using the accrual basis of accounting which is described in the notes to the Organizations financial statements. Such expenditures are recognized following the cost principles contained in Uniform Guidance, where certain types of expenditure are not allowable or are limited as to reimbursement.NOTE 3 RELATIONSHIP TO FEDERAL, STATE, COUNTY AND CITY AWARDS REPORTS: Amounts reported in the SEFA agree with the amounts reported in the related federal, state, county and city financial reports for all major federal, state, county and city programs. De Minimis Rate Used: N Rate Explanation: NOTE 4 INDIRECT COSTS: The SEFA includes both direct and indirect costs expnded for all grants. The Organiztion elected to not use the 10% de minimis indirect cost rate as allowed per section 414 of the Uniform Guidance. The indirect costs expended are included as part of the predetermined fixed fees outlined on the grant agreement budgets. COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS (14.218) - Balances outstanding at the end of the audit period were 84264.