Notes to SEFA
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards summarizes the federal award
expenditures disbursed by Indiana Association of Soil & Water Conservation Districts, Inc. received from
the federal government for the year ended September 30, 2023.
For the purpose of the Schedule, federal awards include pass-through funds from grants and contracts
entered into directly between the Association and state or local agencies and departments of the federal
government. Expenditures for these federal pass-through programs, as well as nonpass-through
programs, are recognized on the accrual basis of accounting.REVENUE RECOGNITION The Association’s revenue that is accounted for as reciprocal exchange transactions consists of
membership dues, annual conference and seminars/training.
Dues are billed to members annually and recognized as income on a straight-line basis over the term of
the membership period as performance obligations are satisfied over time. Conference and other types
of revenue are billed to customers throughout the year and are recognized as income when services are
rendered or events occur as performance obligations are satisfied at a point in time. Deferred revenue
represents membership dues, conference registration or training fees paid in advance at year end, which
will be recognized as income when earned. The Association’s revenue does not give rise to significant
variable consideration.GRANTS AND CONTRIBUTIONS Grants and contributions received are recorded with or without donor restrictions depending on the
existence or nature of any donor restrictions. All donor-restricted contributions or grants are reported as
increases to net assets with donor restrictions. When a restriction expires (that is, when a stipulated time
restriction ends or purpose restriction is accomplished, net assets with donor restrictions are reclassified
to net assets without donor restrictions and reported in the statement of activities as release from
restrictions. However, contributions that are restricted by the donor are reported as increase to net
assets without donor restrictions if the restriction expires in the year in which the contributions are
recognized.
De Minimis Rate Used: N
Rate Explanation: The Corporation does not utilize the 10% de minimis cost rate because the guidance under Part 200.414
Indirect Costs does not apply.Expenditures consist of direct and indirect costs. Direct costs are those that can be readily identified with
an individual federally sponsored program. Benefit payments made on behalf of an eligible recipient and
the materials consumed by the program are examples of direct costs.
Unlike direct costs, indirect costs cannot be readily identified with an individually sponsored project.
Indirect costs are the costs of services and resources that benefit many projects as well as nonsponsored
projects and activities. Indirect costs primarily consist of expenses incurred for administration,
payroll taxes and fringe benefits.