Audit 86269

Accounting Policies: The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of Cal Foods Logistics (a California nonprofit corporation) (the "Organization") under programs of the federal government for the year ended June 30, 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 anddoes not present the financial position, changes in net assets, or cash flows of the Organization.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 limited as to reimbursement. Passthrough entity identifying numbers are presented where available and applicable.Nonmonetary assistance for co mmodities received are reported in the Schedule based on USDA published food commodity values for the year ended June 30, 2022. At June 30, 2022 the Organization had USDA food commodities totaling $5,231,583 in inventory. During the years ended June 30, 2022 and 2021 the Organization entered into three fixed-price contracts with the California Department of Social Services. The first fixed-price contract was entered into in October 2020 in the total amount of $50,000,000 for the purpose of food and diaper distribution services under the Federal Coronavirus Relief Funds program. The second fixed-price contract was entered into in April 2021 in the amount of $35,000,000 for the purpose of food and diaper distribution services under the Food and Diaper Program. The third fixed price contract was entered into in September 2021 in the amount of $110,000,000 for the ongoing Food Box Program. As the Organization satisfied performance obligations identified in thoseagreements the Organization recognized total revenue of $77,552,464 and $71,270,585 for the fixed-price contracts for the years ended June 30, 2022 and 2021. In accordance with instructions received from the California Department of Social Services, those agreements are Fixed-Price Contracts awarded under the Federal Acquisition Regulations and based on CFR ?200.101 were not subject to the Single Audit. De Minimis Rate Used: N Rate Explanation: The Organization has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The Organization's indirect cost rate for a given program is calculated by applying that program's proportional direct expenses to the overall pool of indirect expenses.