Notes to SEFA
Title: PASS-THROUGH AWARDS
Accounting Policies: BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation The accompanying schedule of expenditures of federal and non-federal awards (Schedule) includes the federal award and other governmental award activity of The Salvation Army USA, San Diego County, an operating unit of The Western Territory Southern California Division (TSA San Diego County) and is prepared on the accrual basis of accounting. The information in the Schedule is presented in accordance with the requirements Title 2 U.S. Code of Federal Regulations (CFR) 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 TSA San Diego County, it is not intended to and does not present the financial position, change in net assets or cash flows of TSA San Diego County.
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 or expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: Indirect Cost Rate TSA San Diego County did not elect the de minimis indirect cost allocation rate of 10% for the year ended September 30, 2023, and instead allocates indirect costs in accordance with its cost allocation plan, as allowed by the federal grant programs under Uniform Guidance. The cost allocation plan is applied consistently across all programs, federal and nonfederal.
TSA San Diego County receives certain federal awards passed through from other agencies. The amounts of such pass-through awards are included in the Schedule.