Notes to SEFA
Title: NOTE 1 – THE ORGANIZATION
Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal grant
activities of the Food Bank and is presented on the accrual basis of accounting.
De Minimis Rate Used: N
Rate Explanation: Instead of using the 10%
de minimus indirect cost rate allowed under the Uniform Guidance, the Food Bank’s indirect costs are
based on an indirect cost allocation plan that has been agreed upon and approved by the applicable grantor.
Montgomery County Food Bank, Inc., (Food Bank) receives federal grants to carry out its programs and
services for low-income families in Montgomery County, Texas.
Title: NOTE 2 – BASIS OF ACCOUNTING
Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal grant
activities of the Food Bank and is presented on the accrual basis of accounting.
De Minimis Rate Used: N
Rate Explanation: Instead of using the 10%
de minimus indirect cost rate allowed under the Uniform Guidance, the Food Bank’s indirect costs are
based on an indirect cost allocation plan that has been agreed upon and approved by the applicable grantor.
The accompanying schedule of expenditures of federal awards (Schedule) includes the federal grant
activities of the Food Bank and is presented on the accrual basis of accounting. The information in this
Schedule is presented in accordance with the requirements of the OMB Compliance Supplement.
Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the
preparation of, the basic financial statements.
Title: NOTE 3 – NONCASH AND LOANS
Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal grant
activities of the Food Bank and is presented on the accrual basis of accounting.
De Minimis Rate Used: N
Rate Explanation: Instead of using the 10%
de minimus indirect cost rate allowed under the Uniform Guidance, the Food Bank’s indirect costs are
based on an indirect cost allocation plan that has been agreed upon and approved by the applicable grantor.
The Food Bank expended federal awards in the form of noncash food commodity assistance. There were
no federal awards expended in the form of insurance and there were no federal program loans or loan
guarantees outstanding at year-end.
Title: NOTE 4 – INDIRECT COST
Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal grant
activities of the Food Bank and is presented on the accrual basis of accounting.
De Minimis Rate Used: N
Rate Explanation: Instead of using the 10%
de minimus indirect cost rate allowed under the Uniform Guidance, the Food Bank’s indirect costs are
based on an indirect cost allocation plan that has been agreed upon and approved by the applicable grantor.
Expenditures included in the Schedule represent both direct and indirect costs. Instead of using the 10%
de minimus indirect cost rate allowed under the Uniform Guidance, the Food Bank’s indirect costs are
based on an indirect cost allocation plan that has been agreed upon and approved by the applicable grantor.
Title: NOTE 5 – RELATIONSHIP OF THE SCHEDULE TO FINANCIAL REPORTS SUBMITTED TO GRANT
AWARDING AGENCIES
Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal grant
activities of the Food Bank and is presented on the accrual basis of accounting.
De Minimis Rate Used: N
Rate Explanation: Instead of using the 10%
de minimus indirect cost rate allowed under the Uniform Guidance, the Food Bank’s indirect costs are
based on an indirect cost allocation plan that has been agreed upon and approved by the applicable grantor.
Expenditures included in the Schedule may differ from amounts reflected in the financial reports submitted
to grant awarding agencies for the following reasons:
• Expenses accrued at the end of the Food Bank’s fiscal year may not be included in the financial reports
submitted to grant awarding agencies until after year-end; and
• Differences may exist between grant periods and the Food Bank’s accounting period.
Title: NOTE 6 – CONTINGENCIES
Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal grant
activities of the Food Bank and is presented on the accrual basis of accounting.
De Minimis Rate Used: N
Rate Explanation: Instead of using the 10%
de minimus indirect cost rate allowed under the Uniform Guidance, the Food Bank’s indirect costs are
based on an indirect cost allocation plan that has been agreed upon and approved by the applicable grantor.
Grants require the fulfillment of certain conditions set forth in grant agreements and are regularly monitored
and reviewed by grantors. Management believes that the Food Bank is in substantial compliance with grant
provisions and requirements and that disallowed costs, if any, will not be significant to affect the amounts
and disclosures in the financial statements.