Notes to SEFA
Title: SUBRECIPIENTS
Accounting Policies: NOTE A BASIS OF PRESENTATIONThe accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federalaward activity of Rural Action, Inc. (a nonprofit organization) (the Organization) under programs of thefederal government for the year ended December 31, 2022. The information on this Schedule isprepared in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200,Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards(Uniform Guidance). Because the Schedule presents only a selected portion of the operations of theOrganization, it is not intended to and does not present the financial position, changes in net position, orcash flows of the Organization.NOTE B SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reported on the Schedule are reported on the accrual basis of accounting. Suchexpenditures are recognized following the cost principles contained in Title 2 U.S. Code of FederalRegulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements forFederal Awards, wherein certain types of expenditures may or may not be allowable or may be limited asto reimbursement.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
The Organization passes certain federal awards received from Appalachian Regional Commission toother not-for-profit agencies (subrecipients). As Note B describes, the Organization reports expendituresof Federal awards to subrecipients on an accrual basis of accounting.As a subrecipient, the Organization has certain compliance responsibilities, such as monitoring itssubrecipient to help assure they use this subaward as authorized by laws, regulations, and the provisionsof contracts or grant agreements, and that subrecipients achieve the awards performance goals.
Title: MATCHING REQUIREMENTS
Accounting Policies: NOTE A BASIS OF PRESENTATIONThe accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federalaward activity of Rural Action, Inc. (a nonprofit organization) (the Organization) under programs of thefederal government for the year ended December 31, 2022. The information on this Schedule isprepared in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200,Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards(Uniform Guidance). Because the Schedule presents only a selected portion of the operations of theOrganization, it is not intended to and does not present the financial position, changes in net position, orcash flows of the Organization.NOTE B SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reported on the Schedule are reported on the accrual basis of accounting. Suchexpenditures are recognized following the cost principles contained in Title 2 U.S. Code of FederalRegulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements forFederal Awards, wherein certain types of expenditures may or may not be allowable or may be limited asto reimbursement.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
Certain Federal programs require the Organization to contribute non-Federal funds (matching funds) tosupport the Federally-funded programs. The Organization has met its matching requirements. TheSchedule does not include the expenditure of non-Federal matching funds.