Title: NOTE 1 – THE ORGANIZATION
Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the activity of
Wesley and is presented on the accrual basis of accounting. The information in this Schedule is presented
in accordance with the requirements of the OMB Compliance Supplement. Therefore, some amounts
presented in this Schedule may differ from amounts presented in, or used in the preparation of, the basic
financial statements.
De Minimis Rate Used: N
Rate Explanation: Expenditures included in the Schedule represent both direct and indirect costs. Instead of using the 10%
de minimus indirect cost rate allowed under the Uniform Guidance, Wesley’s indirect costs are based on
an indirect cost allocation plan that has been agreed upon and approved by the applicable grantor.
Wesley receives federal grants to carry out its programs and services for low-income families in the Near
Northside of Houston, Texas and its surrounding communities.
Title: NOTE 2 – BASIS OF ACCOUNTING
Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the activity of
Wesley and is presented on the accrual basis of accounting. The information in this Schedule is presented
in accordance with the requirements of the OMB Compliance Supplement. Therefore, some amounts
presented in this Schedule may differ from amounts presented in, or used in the preparation of, the basic
financial statements.
De Minimis Rate Used: N
Rate Explanation: Expenditures included in the Schedule represent both direct and indirect costs. Instead of using the 10%
de minimus indirect cost rate allowed under the Uniform Guidance, Wesley’s indirect costs are based on
an indirect cost allocation plan that has been agreed upon and approved by the applicable grantor.
The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the activity of
Wesley and is presented on the accrual basis of accounting. The information in this Schedule is presented
in accordance with the requirements of the OMB Compliance Supplement. Therefore, some amounts
presented in this Schedule may differ from amounts presented in, or used in the preparation of, the basic
financial statements.
Title: NOTE 3 – NONCASH AND LOANS
Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the activity of
Wesley and is presented on the accrual basis of accounting. The information in this Schedule is presented
in accordance with the requirements of the OMB Compliance Supplement. Therefore, some amounts
presented in this Schedule may differ from amounts presented in, or used in the preparation of, the basic
financial statements.
De Minimis Rate Used: N
Rate Explanation: Expenditures included in the Schedule represent both direct and indirect costs. Instead of using the 10%
de minimus indirect cost rate allowed under the Uniform Guidance, Wesley’s indirect costs are based on
an indirect cost allocation plan that has been agreed upon and approved by the applicable grantor.
Wesley expended federal awards in the form of noncash food commodity assistance. There were no
federal awards expended in the form of insurance and there were no federal program loans or loan
guarantees outstanding at year end.
Title: NOTE 4 – INDIRECT COST
Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the activity of
Wesley and is presented on the accrual basis of accounting. The information in this Schedule is presented
in accordance with the requirements of the OMB Compliance Supplement. Therefore, some amounts
presented in this Schedule may differ from amounts presented in, or used in the preparation of, the basic
financial statements.
De Minimis Rate Used: N
Rate Explanation: Expenditures included in the Schedule represent both direct and indirect costs. Instead of using the 10%
de minimus indirect cost rate allowed under the Uniform Guidance, Wesley’s indirect costs are based on
an indirect cost allocation plan that has been agreed upon and approved by the applicable grantor.
Expenditures included in the Schedule represent both direct and indirect costs. Instead of using the 10%
de minimus indirect cost rate allowed under the Uniform Guidance, Wesley’s indirect costs are based on
an indirect cost allocation plan that has been agreed upon and approved by the applicable grantor.
Title: NOTE 5 – RELATIONSHIP OF THE SCHEDULE TO FINANCIAL REPORTS SUBMITTED TO GRANT
AWARDING AGENCIES
Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the activity of
Wesley and is presented on the accrual basis of accounting. The information in this Schedule is presented
in accordance with the requirements of the OMB Compliance Supplement. Therefore, some amounts
presented in this Schedule may differ from amounts presented in, or used in the preparation of, the basic
financial statements.
De Minimis Rate Used: N
Rate Explanation: Expenditures included in the Schedule represent both direct and indirect costs. Instead of using the 10%
de minimus indirect cost rate allowed under the Uniform Guidance, Wesley’s indirect costs are based on
an indirect cost allocation plan that has been agreed upon and approved by the applicable grantor.
Expenditures included in the Schedule may differ from amounts reflected in the financial reports submitted
to grant awarding agencies for the following reasons:
Expenses accrued at the end of Wesley’s fiscal year may not be included in the financial reports
submitted to grant awarding agencies until after year-end;
Program matching costs that are reported in the financial reports submitted to awarding agencies are
not included in the amounts reported in the Schedule; and
Differences may exist between grant periods and Wesley’s accounting period.
Title: NOTE 6 – CONTINGENCIES
Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the activity of
Wesley and is presented on the accrual basis of accounting. The information in this Schedule is presented
in accordance with the requirements of the OMB Compliance Supplement. Therefore, some amounts
presented in this Schedule may differ from amounts presented in, or used in the preparation of, the basic
financial statements.
De Minimis Rate Used: N
Rate Explanation: Expenditures included in the Schedule represent both direct and indirect costs. Instead of using the 10%
de minimus indirect cost rate allowed under the Uniform Guidance, Wesley’s indirect costs are based on
an indirect cost allocation plan that has been agreed upon and approved by the applicable grantor.
Grants require the fulfillment of certain conditions set forth in grant agreements and are regularly monitored
and reviewed by the grantors. Failure to satisfy the requirement of contract agreements could result in
disallowed costs and return of funds to grantors. Management believes that Wesley is in substantial
compliance with grant provisions and requirements and that disallowed costs, if any, will not be significant
to affect the amounts and disclosures in the financial statements.