Title: NOTE 1 - BASIS OF PRESENTATION
Accounting Policies: NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts show on the Schedule represent adjustments or credits made in the normal course of business to amount reported as expenditures in prior years.
De Minimis Rate Used: N
Rate Explanation: NOTE 3 - INDIRECT COST RATE
Pact, Inc. does not utilize the 10% de minimis indirect cost rate as provided under the Uniform Guidance as it does not meet the criteria to elect it. Rather, Pact, Inc. has a negotiated indirect cost rate negotiated with the U.S. Agency for International Development (“USAID”) under a provisional/final rate structure. Pact Inc. applies the approved rate(s) to its federal awards unless statutory or agreed-upon rate caps are in place that limited indirect recovery.
The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Pact, Inc. under programs of the federal government for the year ended September 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”). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic consolidated financial statements. Because the Schedule presents only a selected portion of the operations of Pact, Inc., it is not intended to and does not present the financial position, changes in net assets or cash flows of Pact, Inc. and Affiliates. Amounts to subrecipients are shown separately on the Schedule are also a component of the federal expenditures presented.
Title: NOTE 4 - FEDERAL ASSISTANCE LISTING
Accounting Policies: NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts show on the Schedule represent adjustments or credits made in the normal course of business to amount reported as expenditures in prior years.
De Minimis Rate Used: N
Rate Explanation: NOTE 3 - INDIRECT COST RATE
Pact, Inc. does not utilize the 10% de minimis indirect cost rate as provided under the Uniform Guidance as it does not meet the criteria to elect it. Rather, Pact, Inc. has a negotiated indirect cost rate negotiated with the U.S. Agency for International Development (“USAID”) under a provisional/final rate structure. Pact Inc. applies the approved rate(s) to its federal awards unless statutory or agreed-upon rate caps are in place that limited indirect recovery.
Federal Assistance Listing numbers are assigned to various agreements presented on the Schedule of Expenditures of Federal Awards. When a Federal Assistance Listing number is not assigned, federal awards from the same agency made for the same purpose are combined by primary focus or source, and are considered one program for purposes of determining major programs.
Title: NOTE 5 - RECONCILIATION TO FINANCIAL STATEMENTS
Accounting Policies: NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts show on the Schedule represent adjustments or credits made in the normal course of business to amount reported as expenditures in prior years.
De Minimis Rate Used: N
Rate Explanation: NOTE 3 - INDIRECT COST RATE
Pact, Inc. does not utilize the 10% de minimis indirect cost rate as provided under the Uniform Guidance as it does not meet the criteria to elect it. Rather, Pact, Inc. has a negotiated indirect cost rate negotiated with the U.S. Agency for International Development (“USAID”) under a provisional/final rate structure. Pact Inc. applies the approved rate(s) to its federal awards unless statutory or agreed-upon rate caps are in place that limited indirect recovery.
Management and general (indirect) expenses per financial statements schedule of
functional expenses Pact, Inc. $ 25,491,494
Less: non-program expenditures (3,185,717)
$ 22,305,777
Amounts per consolidated financial statements - see supplementary information:
Program services per financial statements (1) $ 60,855,273
Bad debt expense 90,263
Unrealized foreign exchange gain -
Fundraising expenses per financial statements 3,118
Total direct program services for calculation on page 10 of NICRA $ 60,948,654
(1) Amounts exclude subgrants and subcontracts expenses