Title: Basis of Presentation
Accounting Policies: When preparing a Statement of Expenditure for a Federal Award, it is essential to follow specific accounting policies and procedures to ensure accuracy, transparency, and compliance with the applicable financial reporting standards and regulations. Below are some significant accounting policies that may be used in the preparation of such a statement:
Accrual Basis of Accounting: The Statement of Expenditure for a Federal Award should typically be prepared using the accrual basis of accounting. This means that expenses should be recognized when they are incurred (i.e., when goods and services are received) rather than when they are paid. This is consistent with Generally Accepted Accounting Principles (GAAP).
Matching Principle: The matching principle requires that expenses be matched with the revenue they help to generate. In the context of a Federal Award, this means that expenditures associated with the award should be recognized in the same period in which the corresponding revenue or grant funding is recognized.
Expense Classification: Expenditures should be classified according to their nature and purpose. Common categories of expenditures in a Federal Award statement may include personnel costs, supplies, equipment, travel, indirect costs, and other direct costs. Each category should be detailed and supported by documentation.
Consistency: Accounting policies used for preparing the Statement of Expenditure should be consistent from one reporting period to the next. Any changes in accounting policies should be disclosed, and the impact on prior periods should be restated.
Materiality: Materiality is an important concept in accounting. Expenditures should be recorded and reported if they are material in amount. Materiality depends on the specific circumstances of the entity and the award.
Documentation and Records: Proper documentation of expenditures is crucial. This includes invoices, receipts, timesheets, and other supporting records. All transactions related to the Federal Award should be well-documented and retained for audit purposes.
Compliance with Grant Terms and Regulations: Expenditures should comply with the terms and conditions of the Federal Award, as well as any applicable federal and state regulations. Failure to comply with these terms can result in penalties or the loss of funding.
Internal Controls: Effective internal controls should be in place to ensure that expenditures are accurately recorded and reported. This includes segregation of duties, authorization procedures, and regular reconciliations.
Allocation of Indirect Costs: If the Federal Award includes provisions for the recovery of indirect costs (also known as overhead or administrative costs), these costs should be allocated and documented in accordance with the approved indirect cost rate and methodology.
Grant Reporting Requirements: Specific reporting requirements may be outlined in the grant agreement. These requirements should be followed meticulously, including the format and timing of reports to the awarding agency.
Subrecipient Monitoring: If subrecipients are involved in the grant, there should be policies in place for monitoring their expenditures and compliance with the terms of the Federal Award.
Consolidation: If an organization manages multiple Federal Awards, the Statement of Expenditure should consolidate all relevant awards to provide a comprehensive view of expenditures across the organization.
It's important to note that the specific accounting policies and procedures for preparing a Statement of Expenditure for a Federal Award can vary depending on the grant terms, the nature of the organization, and applicable regulatory requirements. Therefore, organizations receiving Federal Awards should carefully review the terms of their specific grants and work with their auditors or accountants to ensure compliance with all relevant accounting and reporting standards.
De Minimis Rate Used: Y
Rate Explanation: Calumet Area Industrial Development Commission D/B/ A Calumet Area Industrial Commission, has elected
to not use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
The accompanying schedule of expenditures of federal awards (the schedule) includes federal award
activity of Calumet Area Industrial Development Commission DBACalumet Area Industrial Commission
under programs of the federal government for the year ended December 31, 2022.
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 Requirement for Federal Awards (Uniform Guidance). Because the schedule
presents only a selected portion of the operations of Calumet Area Industrial Development Commission D/B/ A
Calumet Area Industrial Commission it is not intended to and does not present the financial position,
changes in net assets, or cash flows of Calumet Area Industrial Development Commission
D/B/ A Calumet Area Industrial Commission
Title: Summary of Significant Accounting Policies
Accounting Policies: When preparing a Statement of Expenditure for a Federal Award, it is essential to follow specific accounting policies and procedures to ensure accuracy, transparency, and compliance with the applicable financial reporting standards and regulations. Below are some significant accounting policies that may be used in the preparation of such a statement:
Accrual Basis of Accounting: The Statement of Expenditure for a Federal Award should typically be prepared using the accrual basis of accounting. This means that expenses should be recognized when they are incurred (i.e., when goods and services are received) rather than when they are paid. This is consistent with Generally Accepted Accounting Principles (GAAP).
Matching Principle: The matching principle requires that expenses be matched with the revenue they help to generate. In the context of a Federal Award, this means that expenditures associated with the award should be recognized in the same period in which the corresponding revenue or grant funding is recognized.
Expense Classification: Expenditures should be classified according to their nature and purpose. Common categories of expenditures in a Federal Award statement may include personnel costs, supplies, equipment, travel, indirect costs, and other direct costs. Each category should be detailed and supported by documentation.
Consistency: Accounting policies used for preparing the Statement of Expenditure should be consistent from one reporting period to the next. Any changes in accounting policies should be disclosed, and the impact on prior periods should be restated.
Materiality: Materiality is an important concept in accounting. Expenditures should be recorded and reported if they are material in amount. Materiality depends on the specific circumstances of the entity and the award.
Documentation and Records: Proper documentation of expenditures is crucial. This includes invoices, receipts, timesheets, and other supporting records. All transactions related to the Federal Award should be well-documented and retained for audit purposes.
Compliance with Grant Terms and Regulations: Expenditures should comply with the terms and conditions of the Federal Award, as well as any applicable federal and state regulations. Failure to comply with these terms can result in penalties or the loss of funding.
Internal Controls: Effective internal controls should be in place to ensure that expenditures are accurately recorded and reported. This includes segregation of duties, authorization procedures, and regular reconciliations.
Allocation of Indirect Costs: If the Federal Award includes provisions for the recovery of indirect costs (also known as overhead or administrative costs), these costs should be allocated and documented in accordance with the approved indirect cost rate and methodology.
Grant Reporting Requirements: Specific reporting requirements may be outlined in the grant agreement. These requirements should be followed meticulously, including the format and timing of reports to the awarding agency.
Subrecipient Monitoring: If subrecipients are involved in the grant, there should be policies in place for monitoring their expenditures and compliance with the terms of the Federal Award.
Consolidation: If an organization manages multiple Federal Awards, the Statement of Expenditure should consolidate all relevant awards to provide a comprehensive view of expenditures across the organization.
It's important to note that the specific accounting policies and procedures for preparing a Statement of Expenditure for a Federal Award can vary depending on the grant terms, the nature of the organization, and applicable regulatory requirements. Therefore, organizations receiving Federal Awards should carefully review the terms of their specific grants and work with their auditors or accountants to ensure compliance with all relevant accounting and reporting standards.
De Minimis Rate Used: Y
Rate Explanation: Calumet Area Industrial Development Commission D/B/ A Calumet Area Industrial Commission, has elected
to not use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures
are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of
expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the schedule
represent adjustments or credits made in the nonnal course of business to amounts reported as expenditures
m pnoryears
Title: Indirect Cost Rates
Accounting Policies: When preparing a Statement of Expenditure for a Federal Award, it is essential to follow specific accounting policies and procedures to ensure accuracy, transparency, and compliance with the applicable financial reporting standards and regulations. Below are some significant accounting policies that may be used in the preparation of such a statement:
Accrual Basis of Accounting: The Statement of Expenditure for a Federal Award should typically be prepared using the accrual basis of accounting. This means that expenses should be recognized when they are incurred (i.e., when goods and services are received) rather than when they are paid. This is consistent with Generally Accepted Accounting Principles (GAAP).
Matching Principle: The matching principle requires that expenses be matched with the revenue they help to generate. In the context of a Federal Award, this means that expenditures associated with the award should be recognized in the same period in which the corresponding revenue or grant funding is recognized.
Expense Classification: Expenditures should be classified according to their nature and purpose. Common categories of expenditures in a Federal Award statement may include personnel costs, supplies, equipment, travel, indirect costs, and other direct costs. Each category should be detailed and supported by documentation.
Consistency: Accounting policies used for preparing the Statement of Expenditure should be consistent from one reporting period to the next. Any changes in accounting policies should be disclosed, and the impact on prior periods should be restated.
Materiality: Materiality is an important concept in accounting. Expenditures should be recorded and reported if they are material in amount. Materiality depends on the specific circumstances of the entity and the award.
Documentation and Records: Proper documentation of expenditures is crucial. This includes invoices, receipts, timesheets, and other supporting records. All transactions related to the Federal Award should be well-documented and retained for audit purposes.
Compliance with Grant Terms and Regulations: Expenditures should comply with the terms and conditions of the Federal Award, as well as any applicable federal and state regulations. Failure to comply with these terms can result in penalties or the loss of funding.
Internal Controls: Effective internal controls should be in place to ensure that expenditures are accurately recorded and reported. This includes segregation of duties, authorization procedures, and regular reconciliations.
Allocation of Indirect Costs: If the Federal Award includes provisions for the recovery of indirect costs (also known as overhead or administrative costs), these costs should be allocated and documented in accordance with the approved indirect cost rate and methodology.
Grant Reporting Requirements: Specific reporting requirements may be outlined in the grant agreement. These requirements should be followed meticulously, including the format and timing of reports to the awarding agency.
Subrecipient Monitoring: If subrecipients are involved in the grant, there should be policies in place for monitoring their expenditures and compliance with the terms of the Federal Award.
Consolidation: If an organization manages multiple Federal Awards, the Statement of Expenditure should consolidate all relevant awards to provide a comprehensive view of expenditures across the organization.
It's important to note that the specific accounting policies and procedures for preparing a Statement of Expenditure for a Federal Award can vary depending on the grant terms, the nature of the organization, and applicable regulatory requirements. Therefore, organizations receiving Federal Awards should carefully review the terms of their specific grants and work with their auditors or accountants to ensure compliance with all relevant accounting and reporting standards.
De Minimis Rate Used: Y
Rate Explanation: Calumet Area Industrial Development Commission D/B/ A Calumet Area Industrial Commission, has elected
to not use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Calumet Area Industrial Development Commission D/B/ A Calumet Area Industrial Commission, has elected
to not use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.