Notes to SEFA
Title: Note 1 - Basis of Presentation
Accounting Policies: Note 2 ‐ Summary of Significant Accounting Policies
Expenditures reported in the Schedule are reported on the accrual basis of accounting. See Note B of the notes to the
financial statements for Child & Family Services, Inc. of Lea County’s significant accounting policies. Expenditure reports to
funding agencies are prepared based on award periods. Such expenditures are recognized following the cost principles in
the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Child &
Family Services, Inc. of Lea County has elected not to use the 10‐percent de minimis indirect cost rate allowed under the
Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: See above note, last sentence.
The accompanying schedule of expenditures of federal awards (the “schedule”) includes the federal grant activity of Child &
Family Services, Inc. of Lea County (the “Organization”) under programs of the federal government for the year ended July
31, 2023. The information in this schedule is presented in accordance with the requirements of the Office of Management
and Budget (OMB) 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 Organization, it is not intended to and does not present the financial position, changes net assets or
cash flows of the Organization.