Notes to SEFA
Accounting Policies: (1) BASIS OF PRESENTATIONThe accompanying schedule of expenditures of federal and local awards presents the activities in all federal andlocal award programs of PLA. All financial assistance received directly from federal agencies, as well as financialawards passed through other governmental and nonprofit agencies, are presented on the schedule of expendituresof federal and local awards. The information in this schedule is presented in accordance with Title 2 U.S. Code ofFederal Regulations ("CFR") Part 200, Uniform Administrative Requirements, Cost Principles, and AuditRequirements for Federal Awards (the "Uniform Guidance"). Therefore, some amounts presented in this schedulemay differ from amounts presented in, or used in the preparation of, the basic financial statements.(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reported on the schedule are reported on the accrual basis of accounting. Such expendituresare recognized following the cost principles contained in the Uniform Guidance, wherein certain types ofexpenditures are not allowable or are limited to reimbursement. PLA has not elected to use the 10-percentde minimus indirect cost rate allowed under the Uniform Guidance.For the Legal Services Corporation Basic Field Grant and Migrant Grant, the expenditures in 2022 exceededthe 2022 grant amount. PLA received the same LSC grants in previous calendar year periods andunderspent those grants. Under LSC policy, PLA may carry forward an LSC fund balance that it may spendin future years. LSC grantees must request approval from LSC if they carry forward more than 10% of theirLSC fund balance and must provide a plan for spending down the fund balance. In 2022, PLA spent downits 2021 LSC fund balance, which is why the expenditures exceeded the grant amount.(3) RELATIONSHIP TO BASIC FINANCIAL STATEMENTSFederal and local award expenditures are reported on the statements of activities as expenses. Amountsrequired to be reported on the schedule of expenditures of federal and local awards may differ from expensesreported in the basic financial statements due to presentation differences for nongrant sources whichprovided support for the program.(4) SUBRECIPIENT FUNDINGThe accompanying Schedule of Expenditures of Federal and Local Awards reflects $498,945 that wassubcontracted to other organizations as follows:Legal Services Corporation ALN #09.339000 & #09.338999Philadelphia VIP $ 13,025Upsolve Inc. 211,411Consumer Bankruptcy Assistance Project 96,617321,053U.S. Department of Justice ALN #16.524Justice at Work 30,108Women Organized Against Rape 26,648HIAS 31,40188,157U.S. Department of Justice ALN #16.021HIAS 4,333Women Against Abuse, Inc. 67,742Women Organized Against Rape 17,66089,735Total subcontracts $ 498,945-
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.