Notes to SEFA
Accounting Policies: The Single Audit Act establishes requirements for audits of States, local governments and Indian tribes that expend over a threshold amount in Federal awards during a fiscal year. Governments that are subject to the Single Audit Act are required to prepare and have audited a Schedule of Expenditures of Federal Awards (SEFA).[1] The SEFA reports amounts expended, not the amount received, during the fiscal year.[2] Uniform Guidance requires that the independent auditor performing a Single Audit render an in-relation-to opinion on the SEFA as part of the independent auditor’s report on the government’s financial statements.[3] While preparing GAAP basis financial statements can be a daunting task, most of the necessary information (numbers) is located in the general ledger. A SEFA does contain financial statement numbers, but it also contains other information not typically found in a general ledger, such as federal agency assistance listings numbers, pass-through entities, program names, and subrecipient information.
De Minimis Rate Used: Y
Rate Explanation: De minimis cost rate used