Notes to SEFA
Accounting Policies: (1) BASIS OF PRESENTATIONThe schedule of expenditures of federal awards is a summary of AAIPs federal award programs presentedon the accrual basis of accounting in conformity with accounting principles generally accepted in the UnitedStates of America. The information in the schedule of expenditures of federal awards is presented inaccordance with the requirements of the Uniform Guidance. Because the schedule presents only a selectedportion of the operations of AAIP, the schedules are not intended to and do not present the financial position,changes in net assets, or cash flows of AAIP.(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reported on the schedule of expenditures of federal awards are reported on the accrual basisof accounting. Such expenditures are recognized following the cost principles contained in the UniformGuidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.AAIP allocates certain indirect expenses to its programs based on management estimates and thedetermination of the percentage of effort expended by employees and other statistical factors. In thismanner, AAIP has elected not to use the 10 percent de minimis indirect cost rate, which is allowed inaccordance with the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.