Notes to SEFA
Accounting Policies: NOTE 1. BASIS OF ACCOUNTINGThe accompanying schedule of expenditures of federal awards includes the federal grant activity of theSecond Harvest Food Bank Santa Cruz County and is presented on the accrual basis of accounting. Theinformation in this schedule is presented in accordance with the requirements of Title 2 U.S. Code ofFederal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and AuditRequirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in thisschedule may differ from amounts presented in, or used in, the preparation of the basic financialstatements.NOTE 2. SUMMARY OF SIGNFICANT ACCOUNTING POLICIESExpenditures reported in the Schedule of Expenditures of Federal Awards are reported on the accrualbasis of accounting. Such expenditures are recognized following the cost principles in the UniformGuidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.NOTE 3. FOOD DONATIONNonmonetary assistance is reported in the schedule at the rate established by Feeding America, whichwas $1.79 a pound during the fiscal year. At June 30, 2022, the Organization had food commoditiestotaling $3,529,752 in inventory.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.