Notes to SEFA
Title: Basis of Presentation
Accounting Policies: Expenditures reported in the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles of Office of Management and Budget Circular A-122, Cost Principles for Non-Profit Organizations, or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The Company has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.The reimbursement of indirect costs reflected in the consolidated financial statements as federal grants revenue is subject to final approval by federal grantors and could be adjusted upon the results of these reviews. Management believes that the results of any such adjustment will not be material to the Companys financial position or change in net assets.
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Public Broadcasting Service and Subsidiaries (the Company) under programs of the federal government for the year ended June 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). Therefore, some amounts presented in this Schedule may differ from amounts presented in, or used in the preparation of, the consolidated financial statements. Because the Schedule presents only a selected portion of the operations of the Company, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Company.All of the Companys federal awards were in the form of cash assistance for the year ended June 30, 2022. The Company had no federally funded insurance program or loan guarantee for the year ended June 30, 2022.
Title: Subrecipients
Accounting Policies: Expenditures reported in the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles of Office of Management and Budget Circular A-122, Cost Principles for Non-Profit Organizations, or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The Company has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.The reimbursement of indirect costs reflected in the consolidated financial statements as federal grants revenue is subject to final approval by federal grantors and could be adjusted upon the results of these reviews. Management believes that the results of any such adjustment will not be material to the Companys financial position or change in net assets.
Expenditures of sub-awards made to organizations are recorded as deliverables are achieved, upon transfer of title of equipment, or as allowable expenses are incurred. Some sub-awards allow advances to be made for expenditures expected to be incurred within the next month. As of June 30, 2022, no advances were outstanding to subrecipients. In fiscal year ended June 30, 2022, the Company transferred title of purchased equipment to subrecipients for the WARN program with a fair market value of $116,834 which is included in the provided to subrecipients column in the Schedule. The equipment purchases were recorded as an expense within the total federal expenditures column of the Schedule in the year of purchase and amounted to $4,689 and $112,145 for the fiscal years ending June 30, 2022 and 2021, respectively.