Notes to SEFA
Title: NOTE 1 - BASIS OF ACCOUNTING
Accounting Policies: Federal grant funds are considered to be earned to the extent of expenditures made under the provisions of the grant and, therefore, are received on a reimbursement basis from the federal program monitor.
De Minimis Rate Used: N
Rate Explanation: Expenditures included in the schedule represent both direct costs and indirect costs. Interfaith uses the 10% de minimus indirect cost rate allowed under the Uniform Guidance.
The accompanying schedule of expenditures of federal awards includes the federal grant activity of The
Woodlands Religious Community, Inc. dba Interfaith of The Woodlands (Interfaith). Interfaith accounts for
all awards under federal programs on an accrual basis of accounting. The information in this schedule is
presented in accordance with 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
Interfaith’s financial statements.
Federal grant funds are considered to be earned to the extent of expenditures made under the provisions
of the grant and, therefore, are received on a reimbursement basis from the federal program monitor.
Title: NOTE 2 - INDIRECT COST
Accounting Policies: Federal grant funds are considered to be earned to the extent of expenditures made under the provisions of the grant and, therefore, are received on a reimbursement basis from the federal program monitor.
De Minimis Rate Used: N
Rate Explanation: Expenditures included in the schedule represent both direct costs and indirect costs. Interfaith uses the 10% de minimus indirect cost rate allowed under the Uniform Guidance.
Expenditures included in the schedule represent both direct costs and indirect costs. Interfaith uses the 10% de minimus indirect cost rate allowed under the Uniform Guidance.
Title: NOTE 3 - RELATIONSHIP OF THE SCHEDULE TO FINANCIAL REPORTS SUBMITTED TO GRANT AWARDING AGENCIES
Accounting Policies: Federal grant funds are considered to be earned to the extent of expenditures made under the provisions of the grant and, therefore, are received on a reimbursement basis from the federal program monitor.
De Minimis Rate Used: N
Rate Explanation: Expenditures included in the schedule represent both direct costs and indirect costs. Interfaith uses the 10% de minimus indirect cost rate allowed under the Uniform Guidance.
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 Interfaith’s fiscal year may not be included in the financial reports submitted to grant awarding agencies until after year-end; and Differences may exist between grant periods and Interfaith’s accounting period.
Title: NOTE 4 - CONTINGENCIES
Accounting Policies: Federal grant funds are considered to be earned to the extent of expenditures made under the provisions of the grant and, therefore, are received on a reimbursement basis from the federal program monitor.
De Minimis Rate Used: N
Rate Explanation: Expenditures included in the schedule represent both direct costs and indirect costs. Interfaith uses the 10% de minimus indirect cost rate allowed under the Uniform Guidance.
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 requirements of contact agreements could result in disallowed costs and return of funds to grantors. Management believes that Interfaith 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.