Notes to SEFA
Title: NOTE A – BASIS OF PRESENTATION
Accounting Policies: The SEFA includes the federal grant activity of the auditee and is presented on the accrual basis of accounting. The information in the SEFA is presented 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 Audits.
De Minimis Rate Used: N
Rate Explanation: The entity utilzes the indirect cost rate stated in the respective contracts.
The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal grant activity of Kanu o ka `Aina Learning `Ohana (KALO) and is presented on the accrual basis of accounting. The information in this Schedule is presented 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 (Uniform Guidance). Therefore, certain amounts presented in this Schedule may differ from amounts presented in, or used in the preparation of, the financial statements of KALO.
Title: NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Policies: The SEFA includes the federal grant activity of the auditee and is presented on the accrual basis of accounting. The information in the SEFA is presented 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 Audits.
De Minimis Rate Used: N
Rate Explanation: The entity utilzes the indirect cost rate stated in the respective contracts.
The 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. In addition, agency or pass-through numbers are presented where available.
Title: NOTE C – NOTES PAYABLE TO USDA
Accounting Policies: The SEFA includes the federal grant activity of the auditee and is presented on the accrual basis of accounting. The information in the SEFA is presented 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 Audits.
De Minimis Rate Used: N
Rate Explanation: The entity utilzes the indirect cost rate stated in the respective contracts.
Balances outstanding on notes payable to the United State Department of Agriculture under the Community Facilities Loans and Grants program (federal AL #10.766) amounted to $10,939,142 at August 31, 2023. However, there were no expenditures of federal funds under this program for the year ended August 31, 2023.
Title: NOTE D – INDIRECT COST RATES
Accounting Policies: The SEFA includes the federal grant activity of the auditee and is presented on the accrual basis of accounting. The information in the SEFA is presented 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 Audits.
De Minimis Rate Used: N
Rate Explanation: The entity utilzes the indirect cost rate stated in the respective contracts.
KALO has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.