Notes to SEFA
Title: BASIS OF PRESENTATION
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: Y
Rate Explanation: In accordance with Section 2 U.S. Code of Federal Regulations Part 200.412 the Organization is allowed to elect to use the ten percent de minimis indirect cost rate. The Organization has elected to use this rate.
The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of The Villages, Inc. under programs of the federal government for the year ended December 31, 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). Because the schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization.
Title: DISALLOWED FEDERAL EXPENDITURES
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: Y
Rate Explanation: In accordance with Section 2 U.S. Code of Federal Regulations Part 200.412 the Organization is allowed to elect to use the ten percent de minimis indirect cost rate. The Organization has elected to use this rate.
During the year ended December 31, 2023, the Organization became aware of expenditures that are potentially disallowed by the U.S, Department of Health and Human Services (HHS) for the Unaccompanied Alien Children Program and recorded a liability of $216,000 for its reasonably estimated disallowed expenditures. As of the date of the audit report, the HHS has not mase a final determination of the allowability of these expenditures. These expenditures are not included in the schedule for the year ended December 31, 2023.