Audit 11323

Title: INDIRECT COST RATE Accounting Policies: General The accompanying schedule of expenditures of federal awards (SEFA) presents the activity of all federal financial assistance programs of the Southeast Regional Resource Center, Inc. (Resource Center). The information in the SEFA 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). Federal financial assistance received directly from federal agencies as well as federal financial assistance passed through other entities is included on the SEFA. Basis of Accounting The accompanying SEFA is presented using the accrual basis of accounting, which is described in Note 1 to the Resource Center’s financial statements. 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 (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Resource Center has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The Resource Center has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Negative amounts as reported on the SEFA represent differences between provisional indirect rates that have settled as final. These amounts are reported either as payable to grantors in the statement of financial position, a reduction in accounts receivable due from the grantor, or as a refundable advance in the statement of financial position, depending on how the grantor is requiring treatment of the funds.

Title: RECONCILIATION OF SEFA TO FINANCIAL STATEMENTS Accounting Policies: General The accompanying schedule of expenditures of federal awards (SEFA) presents the activity of all federal financial assistance programs of the Southeast Regional Resource Center, Inc. (Resource Center). The information in the SEFA 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). Federal financial assistance received directly from federal agencies as well as federal financial assistance passed through other entities is included on the SEFA. Basis of Accounting The accompanying SEFA is presented using the accrual basis of accounting, which is described in Note 1 to the Resource Center’s financial statements. 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 (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Resource Center has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The following is a reconciliation of grant revenues reported in the Resource Center’s financial statements to federal expenditures reported in the SEFA: Grant revenue, as reported in the statement of activities $ 7,033,035 Less: State of Alaska financial assistance (1,271,967) Less: Local and other grants (103,085) Federal share of expenditures as reported in the SEFA $ 5,657,983