Notes to SEFA
Accounting Policies: Basis of Presentation: The accompanying schedule of expenditures of federal awards (SEFA) includes the federal grant activity of Sugar Hill-Montford Cove Volunteer Fire Department, Inc. under the programs of the federal government for the year ended June 30, 2023. The information in the SEFA is presented in accordance with the requirements of Title 2 US Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the SEFA presents only a selected portion of the operations of Sugar Hill-Montford Cove Volunteer Fire Department, Inc., it is not intended to and does not present the financial position, statement of operations, change in net assets, functional expenses, or cash flows of Sugar Hill-Montford Cove Volunteer Fire Department, Inc.
Summary of Significant Accounting Policies: Expenditures reported in the SEFA are reported on the cash basis of accounting. The cash basis of accounting differs from GAAP primarily because revenues are recognized when received rather than when earned and expenses are recognized when paid rather than when incurred. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowed or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: Sugar Hill-Montford Cove Volunteer Fire Department, Inc. has not elected to use the 10 percent de minimis indirect cost rate allowed under Uniform Guidance.