Notes to SEFA
Title: NOTE 2 BASIS OF PRESENTATION
Accounting Policies: NOTE 1 THE ORGANIZATION Community Family Centers, Inc. (CFC) receives federal grants to carry out its programs and services for low-income families in the East End of Houston, Texas and its surrounding communities.
De Minimis Rate Used: N
Rate Explanation: NOTE 4 INDIRECT COST Expenditures included in the Schedule represent both direct costs and indirect costs. Instead of using the 10% de minimus indirect cost rate allowed under the Uniform Guidance, CFCs indirect costs are based on an indirect cost allocation plan that has been agreed upon and approved by the applicable grantor. In 2022,CFC was issued a provisional Modified Total Direct Cost rate of 23.56% for 2022 and 2023.
The schedule of expenditures of federal awards (the Schedule) includes the federal grant activities of CFC. Expenditures reported in the Schedule are reported on the accrual basis of accounting. Because the Schedule presents only a selected portion of CFCs operations, it is not intended to and does not present its financial position, changes in net assets, or cash flows for 2022.
Title: NOTE 3 NONCASH ASSISTANCE
Accounting Policies: NOTE 1 THE ORGANIZATION Community Family Centers, Inc. (CFC) receives federal grants to carry out its programs and services for low-income families in the East End of Houston, Texas and its surrounding communities.
De Minimis Rate Used: N
Rate Explanation: NOTE 4 INDIRECT COST Expenditures included in the Schedule represent both direct costs and indirect costs. Instead of using the 10% de minimus indirect cost rate allowed under the Uniform Guidance, CFCs indirect costs are based on an indirect cost allocation plan that has been agreed upon and approved by the applicable grantor. In 2022,CFC was issued a provisional Modified Total Direct Cost rate of 23.56% for 2022 and 2023.
Amounts from the Emergency Food Assistance Program included on the accompanying Schedule of Expenditures of Federal Awards represent noncash assistance in the form of food commodities.
Title: NOTE 5 RELATIONSHIP OF THE SCHEDULE TO FINANCIAL REPORTS SUBMITTED TO GRA
Accounting Policies: NOTE 1 THE ORGANIZATION Community Family Centers, Inc. (CFC) receives federal grants to carry out its programs and services for low-income families in the East End of Houston, Texas and its surrounding communities.
De Minimis Rate Used: N
Rate Explanation: NOTE 4 INDIRECT COST Expenditures included in the Schedule represent both direct costs and indirect costs. Instead of using the 10% de minimus indirect cost rate allowed under the Uniform Guidance, CFCs indirect costs are based on an indirect cost allocation plan that has been agreed upon and approved by the applicable grantor. In 2022,CFC was issued a provisional Modified Total Direct Cost rate of 23.56% for 2022 and 2023.
Expenditures included in the Schedule may differ from amounts reflected in the financial reports submitted to grant awarding agencies for the following reasons:? Expenses accrued at the end of CFCs fiscal year may not be included in the financial reports submitted to grant awarding agencies until after year-end;? Program matching costs that are reported in the financial reports submitted to awarding agencies are not included in the amounts reported in the Schedule; and? Differences may exist between grant periods and CFCs accounting period.
Title: NOTE 6 CONTINGENCIES
Accounting Policies: NOTE 1 THE ORGANIZATION Community Family Centers, Inc. (CFC) receives federal grants to carry out its programs and services for low-income families in the East End of Houston, Texas and its surrounding communities.
De Minimis Rate Used: N
Rate Explanation: NOTE 4 INDIRECT COST Expenditures included in the Schedule represent both direct costs and indirect costs. Instead of using the 10% de minimus indirect cost rate allowed under the Uniform Guidance, CFCs indirect costs are based on an indirect cost allocation plan that has been agreed upon and approved by the applicable grantor. In 2022,CFC was issued a provisional Modified Total Direct Cost rate of 23.56% for 2022 and 2023.
Grants require the fulfillment of certain conditions set forth in grant agreements and are regularly monitored and reviewed by the grantors. Failure to satisfy the requirements of contact agreements could result in disallowed costs and return of funds to grantors. Management believes that CFC is in substantial compliance with grant provisions and requirements and that disallowed costs, if any, will not be significant to affect the amounts and disclosures in the financial statements.