Notes to SEFA
Accounting Policies: NOTE 1 BASIS OF PRESENTATIONThe accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Volunteer Ministry Center, Inc. The information in this schedule is presented in accordance with the requirements of Uniform Guidance, Audits of States, Local Governments, and Non-Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the consolidated financial statements.NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES FOR FEDERAL EXPENDITURESFor the purposes of the schedule, expenditures of Federal awards are recognized on the accrual basis of accounting.NOTE 3 10% DE MINIMIS INDIRECT COST RATETitle 2, Section 200.414(f) of the Code of Federal Regulations (CFR) allows certain non-federal agencies that never received a negotiated federal indirect cost rate to instead use the 10% de minimis indirect cost rate to recover allowable indirect costs for federal grants and cooperative agreements. If the agency elects to use the 10% de minimis indirect cost rate, the agency must continue to use the 10% de minimis indirect cost rate for all federal awards until the agency negotiates a cost rate. The Organization did not elect to utilize the 10% deminimis indirect cost rate.NOTE 4 PASS-THROUGH AWARDSThe Organization received certain federal awards from pass-through awards of the State of Tennessee, the City of Knoxville, and Knox County. The total amount of such pass-through awards is included o the supplementary schedule of expenditures of federal awards.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.