Audit 56158

Accounting Policies: Note A Single Audit RequirementsThe Office of Management and Budget Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards; Final Rule was released in the Federal Register on December 26, 2013 (2 CFR Chapter I, Chapter II, Part 200, et al.). This guidance supersedes requirements from OMB Circulars A-21, A-87, A-110, and A-122 (which have been placed in 2 C.F.R. Parts 220, 225, 215, and 230); Circulars A-89, A-102, and A-133; and the guidance in Circular A-50 on Single Audit Act follow-up. The new requirements state that an entity expending $750,000 or more of federal funds adhere to the Uniform Requirements.The funds used to account for these funds use the accrual basis of accounting.1.)GeneralThe accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal awards programs of the Housing Authority. The Housing Authority reporting entity is defined in Note 1 to the Housing Authoritys basic financial statements. Federal awards received directly from federal agencies, as well as federal awards passed through other governmental agencies, are included on the schedule.2.)Basis of AccountingThe accompanying Schedule of expenditures of Federal Awards is presented using the accrual basis of accounting, which is described in Note 1 to the Housing Authoritys basic financial statements.3.)Relationship to Basic Financial StatementsFederal award revenues are reported in the Housing Authoritys basic financial statements as follows: General: Operating Fund Section 8 $878,935 Total $878,935Amounts reported in the accompanying schedule agree with the amounts reported in the related federal financial reports except for changes made to reflect amounts in accordance with U.S. generally accepted accounting principles.4.)Federal AwardsIn accordance with HUD Notice PIH 98-14, federal awards do not include the Housing Authoritys operating income from rents or investments (or other non-federal sources). In addition, the entire amount of operating subsidy received during the fiscal year is considered to be expended during the fiscal year.5.) Indirect Cost RateNewellton Housing Authority has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.