Notes to SEFA
Title: BASIS OF PRESENTATION
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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. Indirect cost is charged to the grants/contracts based upon amounts approved within each grant/contract budget. The Organization has elected not to use the 10- percent de minimus indirect cost rate allowed under Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: Management formally requested from HUD and was approved the ability to charge admin at 20.33% under the simplified method of direct payroll costs of all programs. The contract with the State, however, limited the admin cost to 10% in the budget, so admin was charged at 20.33% until that budget line item was exhausted then no more admin was charged to the grant effectively capping it at 10% anyway.
The accompanying schedule of expenditures of federal awards includes the federal grant/contract activity of the CHATT Foundation as of and for the year ended December 31, 2022, and is presented on the accrual basis of accounting. 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 (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Because the Schedule presents only a selected portion of the operations of CHATT Foundation, it is not intended to and does not present the financial position, changes in net assets, or cash flows of CHATT Foundation. CHATT Foundation receives grant/contracts direct from federal agencies and is a sub-recipient of federal grant/contract funds passed-through the State of Tennessee. The schedule of expenditures of federal funds includes all direct federal grant/contract expenses and the portion of federal funds earned/expensed on grants/contracts passed-through the State of Tennessee. "Receivable Balance December 31, 2021" represents federal grant/contract funds earned during the prior period, but not received before the end of that period. "Cash Receipts" represent the actual cash received from the grantor agency during the current period. "Expenditures” represents current period grant/contract revenues earned, recorded on the accrual basis of accounting. Revenues from expensed based grants/contracts are recognized as allowable costs are incurred, following applicable cost principles. Revenues from service based grants/contracts are recognized as the service is provided. "Receivable Balance December 31, 2022" represents the revenues earned from the grant/contract, but which were not received from the grantor agency during the current period.
Title: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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. Indirect cost is charged to the grants/contracts based upon amounts approved within each grant/contract budget. The Organization has elected not to use the 10- percent de minimus indirect cost rate allowed under Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: Management formally requested from HUD and was approved the ability to charge admin at 20.33% under the simplified method of direct payroll costs of all programs. The contract with the State, however, limited the admin cost to 10% in the budget, so admin was charged at 20.33% until that budget line item was exhausted then no more admin was charged to the grant effectively capping it at 10% anyway.
Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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. Indirect cost is charged to the grants/contracts based upon amounts approved within each grant/contract budget. The Organization has elected not to use the 10- percent de minimus indirect cost rate allowed under Uniform Guidance.