Notes to SEFA
Title: BASIS OF PRESENTATION
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following 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: N/A
The accompanying Schedule of Expenditures of Federal Awards (the Schedule) summarizes the federal expenditures of Alabama Council on Human Relations, Inc. and affiliates (the Agency) under programs of the federal government for the year ended February 28, 2022. The information in the 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 the Agency, it is not intended to and does not present the consolidated financial position, changes in net assets, or cash flows of the Agency. For purposes of the Schedule, federal awards include all grants, contracts, and similar agreements entered into directly between the Agency and agencies and departments of the federal government and all sub-awards to the Agency by nonfederal organizations pursuant to federal grants, contracts, and similar grants.
Title: RECONCILIATION OF THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS TO THE CONSOLIDATED STATEMENT OF ACTIVITIES
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following 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: N/A
The amounts reflected in the financial reports submitted to the awarding federal and/or pass- through agencies and the Schedule may differ. Some of the factors that may account for any difference include the following: The Agency's fiscal year end may differ from the program's year end. Accruals recognized in the Schedule, because of year end procedures, may not be reported in the program financial reports until the next program reporting period. Fixed asset purchases and the resultant depreciation charges are recognized as fixed assets in the Agency's consolidated financial statements and as expenditures in the program financial reports.
Title: FEDERAL PASS-THROUGH FUNDS
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following 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: N/A
The Agency is also the sub-recipient of federal funds that have been subjected to testing and are reported as expenditures and listed as federal pass-through funds. Federal awards other than those indicated as pass-throughs are considered direct.
Title: CONTINGENCIES
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following 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: N/A
Grant monies received and disbursed by the Agency are for specific purposes and are subject to audit by the corresponding oversight agencies. Such audits may result in requests for reimbursement due to disallowed expenditures. The Agency believes that is unlikely that the various agencies would disallow a significant portion of the expenditures incurred, if any.