Audit 5225

Title: NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Expenditures reported on the schedule of expenditures of Federal awards (the Schedule) are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Organization did not elect to use the 10% de minimus indirect cost rate. This schedule relates only to the federal grant programs administered by Maryland Coalition of Families, Inc. (the Organization) (a nonprofit organization). It should be read in conjunction with the Organization's primary financial statements and the notes thereto. The programs are subject to the accounting policies and procedures of the Organization which conform to accounting principles generally accepted in the United States of America. Federal awards are received from the U.S. Department of Health and Human Services and the U.S. Department of Education. Revenue is recognized when earned, based on meeting the legal or contractual requirements of the funding source. Expenditures of grant funds are to be made for the purposes specified by the grantor. Expenditures are subject to audit by the grantor.

Title: NOTE 2 - BASIS OF ACCOUNTING Accounting Policies: Expenditures reported on the schedule of expenditures of Federal awards (the Schedule) are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Organization did not elect to use the 10% de minimus indirect cost rate. Expenditures reported on the schedule of expenditures of Federal awards (the Schedule) are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement.

Title: NOTE 3 - INDIRECT COST RATE Accounting Policies: Expenditures reported on the schedule of expenditures of Federal awards (the Schedule) are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Organization did not elect to use the 10% de minimus indirect cost rate. The Organization did not elect to use the 10% de minimus indirect cost rate.