Notes to SEFA
Accounting Policies: The amounts reported as federal expenditures were obtained from the federal financial reports for the applicable program and periods. The amounts included in these reports are prepared from records maintained for each program, which are reconciled with Peter Cardellas financial reporting system. These records are periodically reconciled to the general ledger which is the source of the general purpose financial statements. 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.Disallowances/adjustmentsNegative amounts shown on the Schedule of Expenditures of Federal Awards (when applicable) represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.Indirect CostsIndirect costs are included in the reported expenditures to the extent they are included in the federal financial reports used as the source of the data presented. Under the Uniform Guidance, absent an agreed upon indirect cost rate, Peter Cardella must elect to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. There is no other indirect cost allocation plan in effect.Matching CostsMatching costs (i.e. Peter Cardellas share of certain program costs) are not included in the reported expenditures.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.