Notes to SEFA
Title: Contngencies
Accounting Policies: The accompanying Schedule of Expenditures of Federal and State Awards (the Schedule) includes the federal grant activity of the Organization under programs of the federal government passed through from the State of Tennessee for the year ended December 31, 2022. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) 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 the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate. The Schedule is prepared 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. The Organization has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Total federal awards include the Economic Injury Disaster funds received through the SBA in May 2022. Installment payments of $6,731, including principal and interest at a rate of 2.75% will begin in November 2024 and mature May 2052. The loan balance is $1,499,900 at December 31, 2022. The Organization did not expend any Federal or State awards during 2022 in the form of non-cash assistance or provide any funds to subrecipients.
These programs are subject to financial and compliance audits by grantor agencies. The amount, if any, of expenditures that may be disallowed by the grantor agencies cannot be determined at this time, although the Organization expects such amounts, if any, to be immaterial.
Title: Reconciliation to Statement of Activities
Accounting Policies: The accompanying Schedule of Expenditures of Federal and State Awards (the Schedule) includes the federal grant activity of the Organization under programs of the federal government passed through from the State of Tennessee for the year ended December 31, 2022. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) 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 the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate. The Schedule is prepared 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. The Organization has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Total federal awards include the Economic Injury Disaster funds received through the SBA in May 2022. Installment payments of $6,731, including principal and interest at a rate of 2.75% will begin in November 2024 and mature May 2052. The loan balance is $1,499,900 at December 31, 2022. The Organization did not expend any Federal or State awards during 2022 in the form of non-cash assistance or provide any funds to subrecipients.
Note 4 - Reconciliation to Statement of ActivitiesGrant revenue of Federal and State awards per books $2,388,435 COVID-19 Economic Injury Disaster Loan 1,499,900 Total Federal and State Awards per SEFA $3,885,335