Notes to SEFA
Title: Basis of Accounting
Accounting Policies: The accompanying Schedules of Expenditures of Federal Awards and State Awards present the activities of all federal and state financial assistance programs of Southwest Key Enterprises, Inc. and Affiliates (the “Company”). The Company’s structure is defined in Note 1 to the consolidated financial statements. The information in these Schedules is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the “Uniform Guidance”) and the State of Texas Single Audit Circular.
De Minimis Rate Used: N
Rate Explanation: The Company does not allocate indirect costs and therefore, is not eligible to use the de minimis indirect cost rate as allowed under the Uniform Guidance, section 414.
The accompanying Schedule of Expenditures of Federal and State Awards are presented using the accrual basis of accounting where grant revenues are recognized as expenditures are incurred.
Title: Relationship to Consolidated Financial Statements
Accounting Policies: The accompanying Schedules of Expenditures of Federal Awards and State Awards present the activities of all federal and state financial assistance programs of Southwest Key Enterprises, Inc. and Affiliates (the “Company”). The Company’s structure is defined in Note 1 to the consolidated financial statements. The information in these Schedules is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the “Uniform Guidance”) and the State of Texas Single Audit Circular.
De Minimis Rate Used: N
Rate Explanation: The Company does not allocate indirect costs and therefore, is not eligible to use the de minimis indirect cost rate as allowed under the Uniform Guidance, section 414.
Federal and State financial assistance funding from the U.S. Department of Health and Human Services, U.S. Department of Agriculture, U.S. Department of Labor, and the State of Texas is reported in the Company’s consolidated financial statements for the year ended August 31, 2022 as federal and state program expenditures. Amounts reported in the accompanying schedule may not agree with the amounts reported in the related federal financial reports filed with the grantor agencies due to timing differences.