Notes to SEFA
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 the cost principles contained in the Uniform Guidance wherein certain types of expenditures
are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: Note 3: Indirect Cost Rate
Neighborhood HealthSource has elected not to use the 10-percent de minimis indirect cost rate allowed under the
Uniform Guidance.
The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity
of Neighborhood HealthSource under programs of the federal government for the year ended December 31,
2023. The information in the Schedule is presented in accordance with requirements of the 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
Neighborhood HealthSource, it is not intended to and does not present the financial position, changes in net
assets or cash flows of Neighborhood HealthSource.
Title: Note 4: Sub-Recipients
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 the cost principles contained in the Uniform Guidance wherein certain types of expenditures
are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: Note 3: Indirect Cost Rate
Neighborhood HealthSource has elected not to use the 10-percent de minimis indirect cost rate allowed under the
Uniform Guidance.
Neighborhood HealthSource does not have any sub-recipients of federal awards.
Title: Note 5: Temporary Assistance for Needy Families
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 the cost principles contained in the Uniform Guidance wherein certain types of expenditures
are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: Note 3: Indirect Cost Rate
Neighborhood HealthSource has elected not to use the 10-percent de minimis indirect cost rate allowed under the
Uniform Guidance.
Federal awards comprised approximately 20% of the total award amounts from the Minnesota Department of
Health FPSP program; accordingly, federal expenditures represent only the federal share of the total expenditures.