Notes to SEFA
Title: Note 1 - Basis of Presentation
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. Pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: The Organization did not elect the 10% de minimus indirect cost rate.
The accompanying schedule of expenditures of federal awards includes the federal award activity of Solutions that Empower People (STEP, Inc.) 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, 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 Solutions that Empower People, Inc., it is not
intended to and does not present the financial position, changes in net assets, or cash flows of the Solutions that Empower People (STEP, Inc.).
Title: (4) Subrecipients:
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. Pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: The Organization did not elect the 10% de minimus indirect cost rate.
The Organization did not have any subrecipients for the year ended June 30, 2022.
Title: (5) Subsequent Reclassification of Federal Loans
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. Pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: The Organization did not elect the 10% de minimus indirect cost rate.
The below expendiutures were previously included on the Schedule of Expenditures of Federal Awards incldued in the financial statements issued on April 18, 2023. This discovery of reclassification of expenditures was made subsequent to the issuance of the financial statements. Accordingly, the Schedule of Expenditures of Federal Awards has been reissued to reflect the reclassification of expenditures.
Title: (6) Relationship to the Financial Statements:
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. Pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: The Organization did not elect the 10% de minimus indirect cost rate.
Federal expenditures, revenues, and capital contributions are reported in the Agency's basic financial statements as follows: