Notes to SEFA
Title: BASIS OF PRESENTATION
Accounting Policies: The accompanying Schedule is presented using the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and the NJ Treasury Circular, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The amounts reported on this Schedule may differ from certain financial reports submitted to federal or state funding agencies due to those reports being submitted on either a cash or modified accrual basis of accounting. Direct award and pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: Community Options, Inc. does not have a federally negotiated indirect cost rate nor has it elected to use the 10% de minimis cost rate as covered in section 200.414 in the Uniform Guidance.
The accompanying schedule of expenditures of federal awards and state financial assistance (the “Schedule”) presents the activity of all financial assistance programs of Community Options, Inc. (the “Corporation”). 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”) and the State of New Jersey, Department of Treasury, Office of Management and Budget Policy Circular 15-08-OMB (“NJ Treasury Circular”). Because the Schedule presents only a selected portion of the Corporation, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Community Options, Inc. All financial assistance received directly from federal agencies as well as federal awards passed through other governmental agencies or non-profit organizations are included in the schedule of expenditures of federal awards and state financial assistance.
Title: RELATIONSHIP TO BASIC COMBINED FINANCIAL STATEMENTS
Accounting Policies: The accompanying Schedule is presented using the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and the NJ Treasury Circular, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The amounts reported on this Schedule may differ from certain financial reports submitted to federal or state funding agencies due to those reports being submitted on either a cash or modified accrual basis of accounting. Direct award and pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: Community Options, Inc. does not have a federally negotiated indirect cost rate nor has it elected to use the 10% de minimis cost rate as covered in section 200.414 in the Uniform Guidance.
The expenditures reporting in the basic combined financial statements may differ from the expenditures reporting in the schedule of federal awards and state financial assistance due to program expenditures exceeding grant or contract budget limitations, matching, or in-kind contributions or capitalization policies required under accounting principles generally accepted in the United States of America. In addition, the basic combined financial statements present the combined expenditures of Community Options, Inc. and Affiliates, and the Schedule presents the expenditures of Community Options, Inc., without eliminating transactions between these entities.