Notes to SEFA
Accounting Policies: Basis of presentation The schedule of expenditures of federal awards (the schedule) is prepared on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U. S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Federal expenses include allowable expenses funded by federal grants. Allowable costs are subject to the cost principles of the Uniform Guidance, and include both costs that are capitalized and costs that are recognized as expenses in HFSCs financial statements in conformity with generally accepted accounting principles.HFSC uses the 10% de minimus rate for indirect costs.Because the schedule presents only a selected portion of the operations of HFSC, it is not intended to, and does not present the net position or changes in net position of HFSC.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.