Notes to SEFA
Accounting Policies: Expenses for direct costs are recognized as incurred using the accrual method of accounting and the cost accounting principles contained in Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Under those cost principles, certain types of expenses are not allowable or are limited as to reimbursement. Expenses include a portion of costs associated with general activities (indirect costs) which are allocated to federal awards under negotiated indirect cost rates. Revenue is recognized in amounts equal to direct costs incurred plus related indirect costs.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.