Notes to SEFA
Title: Summary of Significant Accounting Policies - Basis of Accounting
Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Meridian International Center and Affiliate (Meridian) under programs of the federal government for the year ended September 30, 2022. 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). Because the Schedule presents only a selected portion of the operations of Meridian, it is not intended to and does not present the financial position, changes in net assets or cash flows of Meridian.
De Minimis Rate Used: N
Rate Explanation: General and administrative (G&A) expenses are allocated based on the direct expenses incurred by the departments, excluding participant/escort expenses, amounts in excess of $25,000 paid to each subrecipient and in-kind contributions. Maintenance and operations (M&O) expenses net of related income are allocated based on square footage and time and effort. Meridian has recognized revenue and expenses applying the rate of 32.46% which is less than the approved provisional rate of 35.01% for G&A costs and at the approved provisional rate of $39.92 per square foot for M&O costs. Indirect cost allocation is based upon managements interpretation of the guidance set forth in the Negotiated Rate Agreement dated July 28, 2021. Meridian has not elected to use the 10% de minimis cost rate as allowed under the Uniform Guidance.
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
Title: Reconciliation of Schedule of Expenditures of Federal Awards
Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Meridian International Center and Affiliate (Meridian) under programs of the federal government for the year ended September 30, 2022. 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). Because the Schedule presents only a selected portion of the operations of Meridian, it is not intended to and does not present the financial position, changes in net assets or cash flows of Meridian.
De Minimis Rate Used: N
Rate Explanation: General and administrative (G&A) expenses are allocated based on the direct expenses incurred by the departments, excluding participant/escort expenses, amounts in excess of $25,000 paid to each subrecipient and in-kind contributions. Maintenance and operations (M&O) expenses net of related income are allocated based on square footage and time and effort. Meridian has recognized revenue and expenses applying the rate of 32.46% which is less than the approved provisional rate of 35.01% for G&A costs and at the approved provisional rate of $39.92 per square foot for M&O costs. Indirect cost allocation is based upon managements interpretation of the guidance set forth in the Negotiated Rate Agreement dated July 28, 2021. Meridian has not elected to use the 10% de minimis cost rate as allowed under the Uniform Guidance.
Grants and contracts revenue as shown on the consolidated statement of activities of $28,471,924 less fixed agreement revenue included in the total grants and contracts revenue of $86,479 equals total expenses as shown on the schedule of expenditures of federal awards of $28,385,445.