Notes to SEFA
Accounting Policies: he accompanying schedule of expenditures of federal awards includes the federal grant activity of the Emergency Food and Shelter Program (EFSP) and is presented on the accrual basis of accounting. The determination of when an award is expended is based on when the activity related to the federal award occurs. EFSP has elected not to use the 10% de minimis indirect cost rate; rather, the administrative allowance for EFSP is determined by statute. The maximum administrative allowance for the program is 3.5% for each fiscal year of funding and is shared at the national and local level of the program. Currently, 1% is used by the National Board and 2.5% is used at the local level by the boards and funded agencies. The legislation for the Department of Homeland Security (DHS) Appropriations Act, 2022 (HR22) and the Continuing Appropriations and Ukraine Supplemental Appropriations Act, 2023 (CR23) funding did not specify the administrative allowance. The EFSP National Board approved 5% of the grant award amount for the HR22 and CR23 funding administrative allowance. The information in this schedule is presented 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. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in, the preparation of the basic financial statements.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.