Notes to SEFA
Title: NOTE 2 FOOD COMMODITIES
Accounting Policies: Basis of presentation The schedule of expenditures of federal awards is prepared on the accrual basis of accounting. The information in this schedule 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 (Uniform Guidance). Federal expenditures include allowable costs funded by federal grants. Allowable costs are subject to the cost principles of the Uniform Guidance and include costs that are recognized as expenses in KCMs financial statements in conformity with generally accepted accounting principles. KCM has not elected to use the 10% de minimus cost rate for indirect costs and does not charge indirect costs to its federal grants. Additionally, it does not have any subrecipients.Because the schedule presents only a selected portion of the operations of KCM, it is not intended to and does not present the financial position, changes in net assets, or cash flows of KCM.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Food commodities are expended when distributed. Distributed food is reported in the schedule of expenditures of federal awards as federal expenditures and is valued at the weighted-average wholesale value of one pound of donated product based on the national per pound price as provided by the most recent Feeding America Product Valuation Survey ($1.92 in 2022). At December 31, 2022, $37,114 of government fund food commodities was included in pantry inventory and had not been expended.