Audit 55713

Accounting Policies: 1.BASIS OF PRESENTATIONThe accompanying schedule of expenditures of federal awards and state financial assistance (the Schedule) presents the activities in the financial assistance programs of Newark Emergency Services for Families, Inc. (the Organization). All financial assistance received directly from federal and state agencies as well as financial assistance passed through other governmental agencies or not-for-profit organizations are included in this Schedule. The information in this Schedule is presented in accordance with the requirements of Title 2 U.U. 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, statement of activities or cash flows of the Organization.2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESThe accompanying Schedule of expenditures of federal awards and state financial assistance is presented using 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. The amounts reported in this Schedule as expenditures may differ from certain financial reports submitted to governmental funding agencies due to those reports being submitted on either a cash or modified accrual basis of accounting.3.RELATIONSHIP TO BASIC FINANCIAL STATEMENTSFederal and state financial assistance expenditures are reported on the statement of functional expenses as program and general and administrative expenses. The expenditures reported in the basic financial statements may differ from the expenditures reported in the Schedule due to program expenditures exceeding grant or contract budget limitations, matching or in-kind contributions or capitalization policies required under accounting principles generally accepted in the United States of America.4.INDIRECT COSTSThe Agency has not received a negotiated indirect cost rate, nor has it elected to use the 10% de minimis indirect cost rate allowable under Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.