Audit 51721

Accounting Policies: NEIGHBORHOOD TRUST FEDERAL CREDIT UNIONNotes to Schedule of Expenditures of Federal AwardsYear Ended December 31, 2022NOTE A--BASIS OF PRESENTATIONThe accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Neighborhood Trust Federal Credit Union (the Credit Union) under programs of the federal government for the year ended December 31, 2022. The information in this schedule is presented in accordance with the 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 Schedule presents only a selected portion of the operations of the Credit Union, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Credit Union.NOTE B--SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESBasis of AccountingExpenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the applicable cost principles contained in Title 2 U.S. Code of Federal Regulations Part 230, wherein certain types of expenditures are not allowable or are limited as to reimbursement.Pass-through entity identification numbers are presented where available.Relationship to Basic Financial StatementsFederal award revenues are reported in the basic financial statements as grant revenue. The basic financial statements are presented using the accrual basis of accounting.NOTE C--INDIRECT COST RATESThe Credit Union has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.NOTE D--NONCASH ASSISTANCEThere were no federal awards expended in the form of noncash assistance by the Credit Union during the year ended December 31, 2022, and accordingly, no amounts were reported on the Schedule.NOTE E--SUBRECIPIENTSThe Credit Union provided no federal awards to subrecipients during the year ended December 31, 2022 and accordingly, no amounts were reported on the Schedule. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.