Notes to SEFA
Title: NOTE 1 REPORTING ENTITY
Accounting Policies: Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements, regardless of the measurement focus applied. All funds are accounted for using the accrual basis of accounting. Expenditures of Federal Awards reported on the Schedule are recognized when incurred. Uniform Guidance requires that certain adjustments be made to expenditures recognized when incurred. The adjustments applicable to the Organization are summarized below: Donated Commodities The Organization receives donated commodities such as food for use in one of its programs. The Organization included the fair market value of such commodities on the Schedule of Expenditures of Federal Awards.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Schedule of Expenditure of Federal Awards (the Schedule) includes expenditures of federal awards for the Meals on Wheels Diablo Region, California (Organization).