Audit 51374

Accounting Policies: NOTE 1 BASIS OF PRESENTATIONThe accompanying Schedule of Expenditures of Federal Awards (the Schedule)summarizes the federal awards expended by Grace House, Inc. (the Organization) for theyear ended December 31, 2022.For the purposes of the Schedule, federal awards include all grants, contracts, loans, andloan guarantee agreements entered into directly between the Organization and agencies anddepartments of the federal government. The Organization has classified all awards intomajor and nonmajor programs in accordance with the provisions of Title 2 U.S. Code ofFederal Regulations, Part 200, Uniform Administrative Requirements, Cost Principles, andAudit Requirements for Federal Awards (Uniform Guidance). The major programsincludes the following grants:? Housing Opportunities for Persons with AIDS? Housing Opportunities for Persons with AIDS Pass-through from City of Jackson? Housing Opportunities for Persons with AIDS Pass-through from MississippiHome Corps.NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESBasis of accounting: The accompanying Schedule includes the federal grant activity of theOrganization and is presented on the accrual basis of accounting. The information in theSchedule is presented in accordance with the requirements of the Uniform Guidance.Therefore, some amounts presented in the Schedule may differ from amounts presented in,or used in the preparation of, the basic financial statements. The amounts presented in theSchedule have been reconciled to the Organizations basic financial statements.Cost allocation: The Organization allocates indirect costs related to grant programs inaccordance with, the cost principles contained in the Uniform Guidance. The Organizationhas elected to use the 10% de minimis indirect cost rate as allowed under the UniformGuidance.Program costs/Matching contributions: The amounts shown as current year expensesrepresent only the federal grant portion of the program costs. Entire program costs,including the Organization portion, may be more than shown NOTE 3 OTHER NONCASH ASSISTANCEThe Organization did not receive federal noncash assistance during the year endedDecember 31, 2022.NOTE 4 AMOUNT OF FEDERAL INSURANCE IN EFFECT DURING THE YEARNo federal insurance was received by the Organization during the year ended December 31,2022. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate.