Audit 54441

Accounting Policies: NOTE 1 BASIS OF PRESENTATION The accompanying Schedule of Expenditures of Federal Awards (the Schedule) summarizes the federal awards activity of Community Medical Wellness Centers USA (the Organization) 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 Organization, it is not intended to, and does not present the financial position, changes in net assets, or cash flows of the Organization as of and for the year ended December 31, 2022. NOTE 2 BASIS OF ACCOUNTING Expenditures 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 toreimbursement. The Organization has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. NOTE 3 RELATIONSHIP OF SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS TO THE FINANCIAL STATEMENTS Consistent with managements policy, federal awards are recorded in the same account categories as grants from other sources, which are together reported as grant revenues in the Organizations Financial Statements. As a result, the amount of totalfederal awards expended reported on the Schedule does not agree with total grant revenues reported on the Statement of Activities in the Organization's Financial Statements as of and for the year ended December 31, 2022. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.