Audit 55621

Accounting Policies: 1. SIGNIFICANT ACCOUNTING POLICIESBasis of PresentationThe accompanying Schedule of Expenditure of Federal Awards (the Schedule) includes the federal award activity of theCommunity Action Partnership for Madison County, an entity as defined in Note 1 to the Organizations financial statements,under programs of the federal government for the year ended September 30, 2022. The information in this Schedule is presentedin 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 selectedportion of the operations of the Community Action Partnership for Madison County, it is not intended to and does not present thefinancial position, changes in net assets, or cash flows of the Community Action Partnership for Madison County.Basis of AccountingExpenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognizedfollowing the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform AdministrativeRequirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are notallowable or are limited as to reimbursement. The amounts reported as federal expenditures were obtained from the financialrecords detail, which is the source of the consolidated financial statements.De Minimis Indirect Cost RateCommunity Action Partnership for Madison County has not elected to use the 10 percent de minimis indirect cost rate as allowedunder the Uniform Guidance.Program Cost/Matching ContributionsThe amounts shown as current year expenses represent only the federal grant portion of the program costs. Entire program costsincluding the Organizations portion, may be more than shown. The Organizations records should be consulted to determineamounts expended or matched from non-federal sources.Long-Term Debt - Economic Injury Disaster Loan AL#59.008At September 30, 2022 and 2021, long-term debt consisted of the following:2022 2021SBA Loan The Organization entered in to a secured disaster loan with the U.S. SmallBusiness Administration (SBA) for $150,000 on November 10, 2020. The loan ispayable over 30 years with monthly payments of $641 for principal and interest at a rateof 2.75% per annum. Payments were to begin twelve months after the date of the note.The loan accrues interest during this twelve-month period. The loan is collateralized withthe general assets of the Organization. $ 150,855 $ 153,781 De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.