Notes to SEFA
Title: BASIS OF PRESENTATION
Accounting Policies: EXPENDITURES REPORTED IN THE SEFSA ARE REPORTED ON THE MODIFIED 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: N
Rate Explanation: The auditee did not use the de minimis cost rate.
THE ACCOMPANYING SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDS (SEFSA) INCLUDES THE FEDERAL AND STATE GRANT ACTIVITY OF SOUTHMOUNTAIN CHILDREN AND FAMILY SERVICES UNDER THE PROGRAMS OF THE FEDERAL GOVERNMENT AND THE STATE OF NORTH CAROLINA FOR THE YEAR ENDED SEPTEMBER 30, 2022. THE INFORMATION IN THIS SEFSA IS PRESENTED IN ACCORDANCE WITH THE REQUIREMENTS OF TITLE 2 US CODE OF FEDERAL REGULATIONS PART 200, UNIFORM ADMINISTRATIVE REQUIREMENTS, COST PRINCIPLES, AND AUDIT REQUIREMENTS FOR FEDERAL AWARDS. BECAUSE THE SCHEDULE PRESENTS ONLY A SELECTED PORTION OF THE OPERATIONS OF SOUTHMOUNTAIN CHILDREN AND FAMILY SERVICES, IT IS NOT INTENDED TO, AND DOES NOT, PRESENT THE FINANCIAL POSITION, CHANGES IN NET POSITION, OR CASH FLOWS OF SOUTHMOUNTAIN CHILDREN AND FAMILY SERVICES.