Notes to SEFA
Title: NOTE 1 BASIS OF PRESENTATION
Accounting Policies: NOTE 2SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reported on the schedule of expenditures of federal awards are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Federal Acquisition Regulations, wherein certain types of expenditures are not allowable or are limited to reimbursement. The principal estimates and assumptions used in the preparation of the schedule are related to cost allowability and allocability. Actual results could be different from estimates.
De Minimis Rate Used: N
Rate Explanation: NOTE 4INDIRECT COST RATEThe Organization has elected not to use the 10-percent de minims indirect cost rate allowed under Uniform Guidance.
The accompanying Schedule of Expenditures of Federal Awards (the "Schedule") includes the federal grant activity of Lutheran Social Services of the Virgin Islands, Inc. (Lutheran Social Services) 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 Lutheran Social Services, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Lutheran Social Services.
Title: NOTE 3FEDERAL AUDITS
Accounting Policies: NOTE 2SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reported on the schedule of expenditures of federal awards are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Federal Acquisition Regulations, wherein certain types of expenditures are not allowable or are limited to reimbursement. The principal estimates and assumptions used in the preparation of the schedule are related to cost allowability and allocability. Actual results could be different from estimates.
De Minimis Rate Used: N
Rate Explanation: NOTE 4INDIRECT COST RATEThe Organization has elected not to use the 10-percent de minims indirect cost rate allowed under Uniform Guidance.
The allowability of certain costs under government contracts and grants is subject to audit by the contracting agency. Certain indirect costs charged to contracts and grants are subject to revisions based on government audits of those costs. Contract costs are consistent with the costs principles contained in the Federal Acquisition Regulations and other applicable government costs principles; therefore, costs subsequently disallowed, if any, upon audit by the government would not be material.