Notes to SEFA
Title: 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 Uniform Guidance, wherein certain types of
expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: Y
Rate Explanation: Congregation Ahavath Chesed has
elected to use the ten percent de minimis indirect cost rate allowed under the Uniform Guidance.
The accompanying schedule of expenditures of federal awards and state financial assistance (the Schedules)
includes the federal and state grant activity of Congregation Ahavath Chesed (the School) 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 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 Congregation
Ahavath Chesed, it is not intended to and does not present the financial position, changes in net assets, or
cash flows of Congregation Ahavath Chesed.
Title: Food Nutrition Program:
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 Uniform Guidance, wherein certain types of
expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: Y
Rate Explanation: Congregation Ahavath Chesed has
elected to use the ten percent de minimis indirect cost rate allowed under the Uniform Guidance.
Congregation Ahavath Chesed was approved by the State of New Jersey’s Department of Agriculture, under
the National School Lunch Act and Child Nutrition Act of 1966, to operate the Food Nutrition Program
which includes both the School Breakfast Program and the National School Lunch Program.
Title: Use of Estimates:
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 Uniform Guidance, wherein certain types of
expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: Y
Rate Explanation: Congregation Ahavath Chesed has
elected to use the ten percent de minimis indirect cost rate allowed under the Uniform Guidance.
The preparation of financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect certain reported amounts and
disclosures. Accordingly, actual results could differ from those estimates.
Title: Subsequent Events:
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 Uniform Guidance, wherein certain types of
expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: Y
Rate Explanation: Congregation Ahavath Chesed has
elected to use the ten percent de minimis indirect cost rate allowed under the Uniform Guidance.
Management considers events and transaction that occur after the financials statement date, but before the
financial statements are issued, to provide additional evidence relative to certain estimates or to identify
matters that require additional disclosure. These financial statements were available to be issued on April
9, 2024 and subsequent events have been evaluated through that date.