Audit 9248

Accounting Policies: Note 1 - Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of Priority Trust Credit Union and its subsidiary (the Credit Union) and has been prepared in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Because the Schedule presents only a selected portion of operations of the Credit Union, is not intended to and does not present the financial position, net income, change in members’ equity, or cash flows of the Credit Union. Note 2 - Summary of Significant Accounting Policies Expenditure Recognition Expenditures reported on the Schedule of Expenditures of Federal Awards are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Indirect Cost Rate The Credit Union has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Note 3 - Major Programs Major programs are identified in the Summary of Auditor’s Results section of the Schedule of Findings and Questioned Costs. De Minimis Rate Used: N Rate Explanation: Indirect Cost Rate The Credit Union has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.