Notes to SEFA
Title: Note 1 - Basis of Presentation
Accounting Policies: Accrual Basis of Accounting
De Minimis Rate Used: N
Rate Explanation: Variable rates ranging from 8% to 10% per grant as directed by the specific grant.
The accompanying Schedule of Expenditures of Federal and State Awards (the Schedule) includes the
federal and state grant activity of Mental Health Association of Middle Tennessee and Subsidiary d/b/a
Mental Health America of the MidSouth (the Association) for the year ended June 30, 2023. The
information in the 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) as codified by HHS at 45 CFR Part 75 and the State
of Tennessee. Because the Schedule presents only a selected portion of the operations of the
Association, it is not intended to and does not present the financial position, changes in net assets, or
cash flows of the Association.
Title: Note 2 - Summary of Significant Accounting Policies For Federal Expenditures
Accounting Policies: Accrual Basis of Accounting
De Minimis Rate Used: N
Rate Explanation: Variable rates ranging from 8% to 10% per grant as directed by the specific grant.
For purposes of the Schedule, expenditures for Federal and State programs are recognized 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.
The Association did not expend any Federal or State awards during 2023 in the form of non-cash
assistance or provide any funds to subrecipients.
The Association has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform
Guidance.
Title: Note 3 - Contingencies
Accounting Policies: Accrual Basis of Accounting
De Minimis Rate Used: N
Rate Explanation: Variable rates ranging from 8% to 10% per grant as directed by the specific grant.
These programs are subject to financial and compliance audits by grantor agencies. The amount, if any,
of expenditures that may be disallowed by the grantor agencies cannot be determined at this time,
although the Association expects such amounts, if any, to be immaterial.