Notes to SEFA
Title: Revenue Recognition
Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of ARCIL, Inc. and is presented on the accrual basis of accounting. The information in this schedule is presented in
accordance with the requirements of Uniform Guidance. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in, the preparation of the basic financial statements.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Grant revenues from governmental agencies and other grantors are recognized when compliance with the various grant requirements is achieved. Usually this occurs at the time the expenditures are made and any
grant matching requirements are met.