Title: Basis of Presentation
Accounting Policies: Expenditures reported on the SEFA 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 are limited as to reimbursement. Therefore, some amounts presented in the SEFA may differ from amounts presented in the financial statements, which have been presented in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP).
NVFS does not provide any awards to subrecipients. Therefore, the schedule of expenditures of federal awards has no separate column for amounts awarded to subrecipients.
De Minimis Rate Used: N
Rate Explanation: NVFS negotiates a provisional indirect cost rate for use on its federal grants/agreements.
The accompanying schedule of expenditures of federal awards (SEFA) includes the federal award activity of Northern Virginia Family Service, Inc. (NVFS). 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). Because the schedule presents only a selected portion of the operations of NVFS, it is not intended to and does not present the financial position, changes in net assets, or cash flows of NVFS.
Title: Summary of Significant Accounting Policies
Accounting Policies: Expenditures reported on the SEFA 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 are limited as to reimbursement. Therefore, some amounts presented in the SEFA may differ from amounts presented in the financial statements, which have been presented in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP).
NVFS does not provide any awards to subrecipients. Therefore, the schedule of expenditures of federal awards has no separate column for amounts awarded to subrecipients.
De Minimis Rate Used: N
Rate Explanation: NVFS negotiates a provisional indirect cost rate for use on its federal grants/agreements.
Expenditures reported on the SEFA 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 are limited as to reimbursement. Therefore, some amounts presented in the SEFA may differ from amounts presented in the financial statements, which have been presented in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP).
NVFS does not provide any awards to subrecipients. Therefore, the schedule of expenditures of federal awards has no separate column for amounts awarded to subrecipients.
Title: De Minimis Indirect Cost Rate
Accounting Policies: Expenditures reported on the SEFA 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 are limited as to reimbursement. Therefore, some amounts presented in the SEFA may differ from amounts presented in the financial statements, which have been presented in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP).
NVFS does not provide any awards to subrecipients. Therefore, the schedule of expenditures of federal awards has no separate column for amounts awarded to subrecipients.
De Minimis Rate Used: N
Rate Explanation: NVFS negotiates a provisional indirect cost rate for use on its federal grants/agreements.
NVFS has elected not to use the 10% de minimis rate as allowed by the Uniform Guidance.
Title: Indirect Cost Rates
Accounting Policies: Expenditures reported on the SEFA 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 are limited as to reimbursement. Therefore, some amounts presented in the SEFA may differ from amounts presented in the financial statements, which have been presented in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP).
NVFS does not provide any awards to subrecipients. Therefore, the schedule of expenditures of federal awards has no separate column for amounts awarded to subrecipients.
De Minimis Rate Used: N
Rate Explanation: NVFS negotiates a provisional indirect cost rate for use on its federal grants/agreements.
As provided by the U.S. Department of Health and Human Services (HHS), NVFS’s provisional rate for the year ended June 30, 2023, was 22.0%. However, indirect costs were allocated using a rate of 21.9% during the year ended June 30, 2023. NVFS expects that HHS will approve the final rate for the year ended June 30, 2023, during the latter half of the year ending June 30, 2024. Any variance between the provisional indirect cost rate and the final rate approved by HHS may be adjusted in subsequent periods.
Title: Forgivable Loans Outstanding
Accounting Policies: Expenditures reported on the SEFA 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 are limited as to reimbursement. Therefore, some amounts presented in the SEFA may differ from amounts presented in the financial statements, which have been presented in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP).
NVFS does not provide any awards to subrecipients. Therefore, the schedule of expenditures of federal awards has no separate column for amounts awarded to subrecipients.
De Minimis Rate Used: N
Rate Explanation: NVFS negotiates a provisional indirect cost rate for use on its federal grants/agreements.
NVFS has several forgivable notes payable representing Community Development Block Grants and Neighborhood Stabilization Program loan funds received from the U.S. Department of Housing and Urban Development (HUD) through the Prince William County Department of Housing and Community Development. The loans are scheduled to be forgiven if certain conditions are met. The loans are collateralized by the real estate that NVFS purchased using the loan proceeds (either a house or the SERVE campus). If NVFS sells the underlying real estate prior to the maturity date of any of the loans, the loan related to the property would be payable immediately. However, NVFS intends to retain the properties associated with the loans beyond their maturity dates. The forgivable loans are non-interest bearing. When a loan is forgiven, NVFS reports a gain on forgiveness of note payable in the statement of activities. However, no loans were forgiven during the year ended June 30, 2023. The loans are forgivable upon maturity at various dates from 2039 to 2044.
The schedule of expenditures of federal awards includes the highest balance due on the forgivable loans at any point during the year ended June 30, 2023.
The following summarizes the balances of the forgivable loans outstanding at June 30, 2023 and 2022, which have been included in the schedule of expenditures of federal awards in accordance with the Uniform Guidance.