Notes to SEFA
Title: 1. Basis of Accounting
Accounting Policies: [See the detailed footnotes on attached worksheet]
De Minimis Rate Used: N
Rate Explanation: The auditee used the state negotiated indirect cost rate on any grants that allowed it. Grants with lower limitations for indirect costs were charged at the amounts under those limits. The indirect costs charged on contracts were also limited per federal guidelines.
The Schedule of Expenditures of Federal Awards is prepared on the modified cash basis of accounting. Certain federal grants received by the ESU are funded on a cost-reimbursement basis whereby expenditures are subject to audit by various government agencies prior to submitting reimbursement. Under such circumstances and in a manner consistent with the basis of accounting described above, expenditure balances for these grants represent the disbursement of funds received during the course of the year. This treatment results in timing differences, which are resolved over the term of the grant period.
Title: 2. Reporting Entity
Accounting Policies: [See the detailed footnotes on attached worksheet]
De Minimis Rate Used: N
Rate Explanation: The auditee used the state negotiated indirect cost rate on any grants that allowed it. Grants with lower limitations for indirect costs were charged at the amounts under those limits. The indirect costs charged on contracts were also limited per federal guidelines.
The ESU, for purposes of the Schedule of Expenditures of Federal awards, includes all funds for which the ESU is financially accountable.
Title: 3. Pass-through Awards
Accounting Policies: [See the detailed footnotes on attached worksheet]
De Minimis Rate Used: N
Rate Explanation: The auditee used the state negotiated indirect cost rate on any grants that allowed it. Grants with lower limitations for indirect costs were charged at the amounts under those limits. The indirect costs charged on contracts were also limited per federal guidelines.
The ESU receives certain federal awards in the form of pass-through awards from the State of Nebraska and other various agencies. Such amounts received as pass-through awards are specifically identified on the Schedule of Expenditures of Federal Awards.
Title: 4. Subrecipients
Accounting Policies: [See the detailed footnotes on attached worksheet]
De Minimis Rate Used: N
Rate Explanation: The auditee used the state negotiated indirect cost rate on any grants that allowed it. Grants with lower limitations for indirect costs were charged at the amounts under those limits. The indirect costs charged on contracts were also limited per federal guidelines.
ESU 2 serves as the administrative conduit for passing through federal grant funds to various school districts within the entity’s geographical boundaries. The amounts provided to these school districts are noted on the face of the Schedule of Expenditures of Federal Awards.
Title: 5. Contingencies
Accounting Policies: [See the detailed footnotes on attached worksheet]
De Minimis Rate Used: N
Rate Explanation: The auditee used the state negotiated indirect cost rate on any grants that allowed it. Grants with lower limitations for indirect costs were charged at the amounts under those limits. The indirect costs charged on contracts were also limited per federal guidelines.
The ESU receives funds under various federal grant programs and such assistance is to be expended in accordance with the provisions of the various grants. Compliance with the grants is subject to audit by various government agencies which may impose sanctions in the event of noncompliance. Management believes that they have complied with all aspects of the various grant provisions and the results of adjustments, if any, relating to such audits would not have a material financial impact.
Title: 6. Indirect Costs
Accounting Policies: [See the detailed footnotes on attached worksheet]
De Minimis Rate Used: N
Rate Explanation: The auditee used the state negotiated indirect cost rate on any grants that allowed it. Grants with lower limitations for indirect costs were charged at the amounts under those limits. The indirect costs charged on contracts were also limited per federal guidelines.
The ESU has elected not to use the 10% de minimis cost rate.
Title: 7. Reconciliation of Federal Expenditures
Accounting Policies: [See the detailed footnotes on attached worksheet]
De Minimis Rate Used: N
Rate Explanation: The auditee used the state negotiated indirect cost rate on any grants that allowed it. Grants with lower limitations for indirect costs were charged at the amounts under those limits. The indirect costs charged on contracts were also limited per federal guidelines.
[See the Notes to the SEFA for chart/table]