Notes to SEFA
Accounting Policies: A summary of NORTH’s significant accounting policies and related information is provided below to assist the reader in interpreting the information presented in the Schedule.
Basis of Presentation – The information in the accompanying Schedule is presented in accordance with the requirements of the Uniform Guidance. As the Schedule presents only a selected portion of the operations of NORTH, it is not intended to and does not present the financial position, changes in net assets, or cash flows of NORTH.
Federal Financial Assistance – Pursuant to the Single Audit Act and Amendments, and the Uniform Guidance, federal financial assistance is defined as assistance that non-federal organizations receive or administer in the form of grants, loans, loan guarantees, property (including donated surplus property), cooperative agreements, interest subsidies, insurance, food commodities, direct appropriations, and other assistance, but does not include amounts received as reimbursements for services rendered to individuals for Medicare and Medicaid.
Assistance Listing (AL) – The Schedule presents total expenditures for each federal financial assistance program as identified in the AL. The catalog is a compendium of federal programs, projects, services, and activities administered by departments and establishments of the federal government. Programs included in the catalog are assigned a five-digit program identification number (ALN). The first two digits of the AL number designate the federal agency and the latter three digits designate the federal assistance program within the federal agency.
Major Programs – The Single Audit Act Amendments of 1996 and Uniform Guidance established a risk-based approach for defining major federal financial assistance programs. NORTH had several federal funding sources, one of which has been designated as a major program for the fiscal year ended September 30, 2022.
Indirect cost rate – NORTH elected to not use the Federally allowed 10% de minimis indirect cost rate of overhead to recover allowable indirect costs to its programs.
Functional Allocation of Expenses – Directly identifiable expenses are charged to specific programs and support services. Expenses related to more than one program or function are charged based on time and relative cost. Management and general expenses are those that are not directly identifiable with any specific function but provide for the overall support and direction of NORTH. Accordingly, certain costs have been allocated to program and support services, as illustrated in the statement of functional expenses.
Pass-through Federal Financial Assistance – NORTH received federal financial assistance indirectly from pass-through entities. A pass-through entity is defined as a nonfederal entity that provides federal assistance to a sub-recipient. The pass-through entities are the Pennsylvania Departments of Agriculture and Health, and Temple University College of Public Health. NORTH had no direct federal financial assistance.
De Minimis Rate Used: N
Rate Explanation: Indirect cost rate – NORTH elected to not use the Federally allowed 10% de minimis indirect cost rate of overhead to recover allowable indirect costs to its programs.