Notes to SEFA
Title: NOTE 2 BASIS OF ACCOUNTING
Accounting Policies: BASIS OF PRESENTATION. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Economic Development Corporation of Los Angeles County (LAEDC) under programs of the federal government for the year ended June 30, 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 LAEDC, it is not intended to, and does not present the financial position, changes in net assets, or cash flows of LAEDC.
De Minimis Rate Used: N
Rate Explanation: LAEDC has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Expenditures reported on the Schedule are recognized on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Title: NOTE 3 RELATIONSHIP OF SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS TO THE CONSOLIDATED FINANCIAL STATEMENTS
Accounting Policies: BASIS OF PRESENTATION. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Economic Development Corporation of Los Angeles County (LAEDC) under programs of the federal government for the year ended June 30, 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 LAEDC, it is not intended to, and does not present the financial position, changes in net assets, or cash flows of LAEDC.
De Minimis Rate Used: N
Rate Explanation: LAEDC has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Consistent with management’s policy, federal awards are recorded as part of all government grants. As a result, the amount of total federal awards expended on the Schedule does not agree to total grant revenue on the Consolidated Statement of Activities as presented in LAEDC's Audited Consolidated Financial Statements as of and for the year ended June 30, 2023.