Notes to SEFA
Title: DETERMINATION OF FEDERAL AWARDS EXPENDED
Accounting Policies: The schedule of expenditures of federal awards was prepared following the accrual basis of accounting, which is further explained in Note 1 to the financial statements of the Organization.
De Minimis Rate Used: N
Rate Explanation: All cost included in SEFA are direct costs.
The basis used to determine the amount to be reported as program expenditures includes the following: Expenditure/expense transactions associated with the grants and awards. The value of new loans issued during the fiscal year ended June 30, 2023. New loans issued are included as program expenditures because the Federal Government is at risk for loans until the debt is repaid. A reconciliation between expenditures as per the statement of activities and expenditures as per the schedule are as follows:
Title: MAJOR PROGRAMS
Accounting Policies: The schedule of expenditures of federal awards was prepared following the accrual basis of accounting, which is further explained in Note 1 to the financial statements of the Organization.
De Minimis Rate Used: N
Rate Explanation: All cost included in SEFA are direct costs.
The OMB Compliance Supplement requires the auditor to use a risk-based approach to determine major programs. The OMB also provides an exemption to this approach on the first year of implementation of the circular and when there is a change in auditors. The auditors went through the required procedures of the risk-based approach to select the Organization’s major programs for the year ended June 30, 2023.
Title: FUNDS TO SUBRECECIPIENTS
Accounting Policies: The schedule of expenditures of federal awards was prepared following the accrual basis of accounting, which is further explained in Note 1 to the financial statements of the Organization.
De Minimis Rate Used: N
Rate Explanation: All cost included in SEFA are direct costs.
The Organization did not disburse funds to subrecipients for the years ended June 30, 2023 and 2022.
Title: FEDERAL LOANS PAYABLE
Accounting Policies: The schedule of expenditures of federal awards was prepared following the accrual basis of accounting, which is further explained in Note 1 to the financial statements of the Organization.
De Minimis Rate Used: N
Rate Explanation: All cost included in SEFA are direct costs.
At June 30, 2023, federal loans payable are those included in Note 8 of the financial statements.