Audit 52800

Title: Note 3 Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of Northwest Arkansas Head Start Human Services, Inc. and is presented on the accrual basis of accounting. 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) and the Arkansas Department of Human Services. Because the Schedule presents only a selected portion of the operations of Northwest Arkansas Head Start Human Services, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flow of Northwest Arkansas Head Start Human Services, Inc. De Minimis Rate Used: N Rate Explanation: Expenditures reported on the Schedule are reported on the 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. Northwest Arkansas Head Start Human Services, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. During the year ended December 31, 2022, Northwest Arkansas Head Start Human Services, Inc. received $578,250 in ARPA Stabilization funds (Assistance Listing Number 93.575) from the U.S Department of Health and Human Services passed through the Arkansas Department of Human Services. These monies are not reported on the Schedule because these funds are not subject to the reporting requirements contained in the Uniform Guidance.