Notes to SEFA
Accounting Policies: The accompanying Schedule of Federal Awards presents the activity of all federal programs. All federal financial assistance received directly from federal agencies is indicated on the Schedule of Federal Awards. The amounts reported in the schedule of expenditures may differ from certain financial reports submitted to federal funding agencies due to those reports being submitted on either a cash or modified accrual basis of accounting. Such expenditures are recognized following the cost principles of the Uniform Guidance, wherein certain types of expenditures are non-allowable or are limited as to reimbursement. Federal expenditures are reported on the Statement of Functional Expenses as Program Services. In certain programs, the expenditures reported in the basic financial statements may differ from the expenditures reported in the Schedule of Federal Awards due to program expenditures exceeding grant or contract budget limitations or agency matching or in-kind contributions which are not included as Federal Awards. Uniform Guidance provides administrative requirements, cost principles, and audit requirements for recipients of federal assistance. Uniform Guidance also prescribes a risk-based approach. In order to be Low-Risk Auditee specific conditions must exist for the previous two audit periods. Since the CCBHC grant is new and has not been audited in the two most recent periods, the federal program is considered not low risk. The designation as not low risk is strictly the adherence to the Uniform Guidance's risk approach and is not due to any deficiency in the Organization's internal control.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.