Notes to SEFA
Title: Revolving Loan Funds
Accounting Policies: (1) Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of Mercy Corps and affiliates (the Organization) under programs of the federal government for the year ended June 30, 2022. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, statement of activities, or cash flows of the Organization.(2) Summary of Significant Accounting Policies 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 normal course of business to amounts reported as expenditures in prior years, including finalization of applicable indirect cost rates.
De Minimis Rate Used: N
Rate Explanation: Mercy Corps has a Negotiated Indirect Cost Rate Agreement (NICRA) with its cognizant agency the U.S. Agency for International Development (USAID).
The Organization has established revolving loan funds and loan guarantees with certain proceeds from the sale of U.S. Department of Agriculture commodities and other grant funds. The loans and guarantees are recognized as an expenditure in the year the initial loan is made and are included in the Schedule under the respective grant. Loans made with loan repayment funds are not expensed nor considered federal expenditures for purposes of the Schedule, except to the extent that the federal government imposes continuing compliance requirements. There are no initial loan principal balances outstanding as of June 30, 2023.
Title: Food Commodity Awards
Accounting Policies: (1) Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of Mercy Corps and affiliates (the Organization) under programs of the federal government for the year ended June 30, 2022. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, statement of activities, or cash flows of the Organization.(2) Summary of Significant Accounting Policies 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 normal course of business to amounts reported as expenditures in prior years, including finalization of applicable indirect cost rates.
De Minimis Rate Used: N
Rate Explanation: Mercy Corps has a Negotiated Indirect Cost Rate Agreement (NICRA) with its cognizant agency the U.S. Agency for International Development (USAID).
The Organization receives food commodities and freight grants primarily the U.S. Department of Agriculture. Such commodities are valued using guidelines published by the United States Department of Agriculture. Food granted for distribution is recorded as expenditure in the fiscal year when the commodities are delivered to the ultimate beneficiary.
Title: Freight Awards
Accounting Policies: (1) Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of Mercy Corps and affiliates (the Organization) under programs of the federal government for the year ended June 30, 2022. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, statement of activities, or cash flows of the Organization.(2) Summary of Significant Accounting Policies 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 normal course of business to amounts reported as expenditures in prior years, including finalization of applicable indirect cost rates.
De Minimis Rate Used: N
Rate Explanation: Mercy Corps has a Negotiated Indirect Cost Rate Agreement (NICRA) with its cognizant agency the U.S. Agency for International Development (USAID).
Freight expenditures are classified on the Schedule as either cash or noncash awards depending on the nature of the award. Freight costs paid directly by Mercy Corps and affiliates and subsequently reimbursed by the federal agency are considered cash awards. Freight costs that are paid directly by the federal agency granting the award to the shipping agent are considered noncash awards.