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PIEDMONT AREA MENTAL HEALTH, <br />DEVELOPMENTAL DISABILITIES AND SUBSTANCE ABUSE AUTHORITY <br />NOTE TO SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDS <br />YEAR ENDED JUNE 30, 2006 <br />Basis of Presentation <br />The preceding schedule of expenditures of federal and state awards includes the federal and state <br />grant activity of Piedmont Area Mental Health, Developmental Disabilities and Substance Abuse <br />Authority and is presented on the modified accrual basis of accounting. The information in this <br />schedule is presented in accordance with the requirements of OMB Circular A-133, Audits of States, <br />Local Governments, and Non-Profit Organizafions. Therefore, some amounts presented in this <br />schedule may differ from amounts presented in, or used in the preparation of the general purpose <br />financial statements. <br />(40) <br />G-~~ <br />