Audit 49904

Accounting Policies: ESTIMATESThe preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.FINANCIAL STATEMENT PRESENTATIONThe accompanying financial statements are prepared on the accrual basis of accounting in accordance with U.S. generally accepted accounting principles. Net assets, revenues, expenses, gains, and losses are classified based on the existence or absence of donor imposed restrictions. Accordingly, net assets of Traffick911 and changes therein are classified and reported as follows:Net Assets Without Donor Restrictions: Net assets available for use in general operations and not subject to donor (or certain grantor) restrictions.Net Assets With Donor Restrictions: Net assets subject to donor (or certain grantor) imposed restrictions. Some donor imposed restrictions are temporary in nature, such as those that will be met by the passage of time or other events specified by the donor. Other donor imposed restrictions are perpetual in nature, where the donor stipulates that resources be maintained in perpetuity. Donor imposed restrictions are released when a restriction expires, that is when the stipulated time has elapsed, when the stipulated purpose for which the resource was restricted has been fulfilled, or both. NOTE 2:SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESINCOME TAXESTraffick911 is an organization other than a private foundation exempt from Federal income taxes under IRS Code Section 501(c)(3). Therefore, no provision has been made for Federal income taxes in the accompanying financial statements.Traffick911s policy is to record interest and penalty expense related to income taxes as interest and other expense, respectively. At 31 December 2022, no interest or penalties have been or required to be accrued.FEDERAL AWARDS RECEIVABLETraffick911 has not recorded an allowance for uncollectible accounts because the receivables are considered to be 100% collectible. All receivables on the statement of financial position are due within the next fiscal year. Traffick911 estimates allowances for uncollectible accounts by evaluating the creditworthiness, the historical collections, and the aging of the accounts. Once an account is deemed uncollectible, it is written off. Receivables are considered delinquent based on how recently payments have been received. FEDERAL AWARDS - A significant portion of Traffick911s revenue is derived from cost-reimbursable federal grants, which are conditioned upon certain performance requirements and/or the incurrence of allowable qualifying expenses. Amounts received are recognized as revenue when Traffick911 has incurred expenditures in compliance with specific contract or grant provisions. Traffick911 has contracts for cost reimbursable grants of $1,168,626 for which qualifying expenditures have not been incurred and accordingly have not been recognized at 31 December 2022.CONTRIBUTIONSTraffick911 recognizes contributions when cash, securities or other assets, an unconditional promise to give, or a notification of a beneficial interest is received. Conditional promises to give, those with a measurable performance or other barrier and a right of return, are recognized when the conditions on which they depend have been met. FUNCTIONAL ALLOCATION OF EXPENSESThe financial statements report certain categories of expenses that are attributed to more than one program or supporting function. Therefore, some expenses require allocation on a reasonable basis that is consistently applied. Wages and benefits, and travel and mileage are allocated based on estimates of time and effort b De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.