Notes to SEFA
Accounting Policies: NOTE 1 GENERAL The accompanying schedule of expenditures of federal, state, county, and city awards (SEFA) includes the federal, state, county, and city grant activity of Rainbow Services, Ltd. (the Organization) under programs of the federal, state, county and city government for the year ended June 30, 2023. The information in the SEFA is presented in accordance with the standards applicable fo financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States of AMerica, and the audit requirements of Title 2 U.AS Code of Federal Regulations Part 200, Uniform Administrative Requirements Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the SEGA presents only a selected portion fo the operations of the Organization, it is not inteneded to and does not present the financial positions, changes in net assets or cash flows of the organization. Federal awards received directly form Federal agencies as wll as federal awards passed through state and local agencies , state awards, county awards and city awards are included in the SEFA. NOTE 2: BASIS OF ACCOUNTING The SEFA is presented using the accrual basis of accounting in whcih is described in the notes to the Organizations financials statements. Such expenditures are recognized following the cost pribciples contained in the SEFA. NOTE 3 RELATIONSHIP OF FEDERAL, STATE, COUNTY and CITY AWARDS REPORTS Amounts reported in the SEFA agree witht he amounts reported in the related federal, state, county and city financial reports for all major federal, state, county and city grants.
De Minimis Rate Used: N
Rate Explanation: NOTE 4 INDIRECT COSTS The SEFA includes both direct and indirect costs expended for all grants. The Organization elected not to use the 10% de minimus indirect cost rate allowed per section 414 of the Uniform Guidance. The indirect costs expensed are included as part of the predetermined fixed fees outlined on the grant agreement budgets.