Notes to SEFA
Title: Note 1 - Basis of Presentation
Accounting Policies: We use accrual basis of accounting. As we are funded by both federal and non-federal agencies, direct costs incurred by a specific program are charged directly to that program. Shared costs are allocated to the various programs responsible for that cost. Allocation methods depend on the type of cost being allocated.
Administrative Indirect costs are recorded as its own department. This department represents Executive oversight, Accounting, Human Resources, Quality Assurance and similar functions. Total allowable administrative indirect costs are allocated to all programs usually using the total cost method.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate. We do not have an active and/or approved indirect cost rate agreement with the Federal Government. For the VA Supportive Services for Veteran Families (SSVF) program, we have opted to us the de minimis method in calculating indirect costs.
The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Adjoin 2023 (the “Organization”) 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 by 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: Note 2 - Summary of Significant Accounting Policies
Accounting Policies: We use accrual basis of accounting. As we are funded by both federal and non-federal agencies, direct costs incurred by a specific program are charged directly to that program. Shared costs are allocated to the various programs responsible for that cost. Allocation methods depend on the type of cost being allocated.
Administrative Indirect costs are recorded as its own department. This department represents Executive oversight, Accounting, Human Resources, Quality Assurance and similar functions. Total allowable administrative indirect costs are allocated to all programs usually using the total cost method.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate. We do not have an active and/or approved indirect cost rate agreement with the Federal Government. For the VA Supportive Services for Veteran Families (SSVF) program, we have opted to us the de minimis method in calculating indirect costs.
Expenditures are recognized following the cost principles contained in by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where applicable.
Revenues from award programs are recognized in the period in which terms of the grant or contractual agreements have been met and the revenue earned and are included in the Organization’s financial statements as “Grants from Supportive Services for Veteran Families”.
Title: Note 3 - Indirect Cost Rate
Accounting Policies: We use accrual basis of accounting. As we are funded by both federal and non-federal agencies, direct costs incurred by a specific program are charged directly to that program. Shared costs are allocated to the various programs responsible for that cost. Allocation methods depend on the type of cost being allocated.
Administrative Indirect costs are recorded as its own department. This department represents Executive oversight, Accounting, Human Resources, Quality Assurance and similar functions. Total allowable administrative indirect costs are allocated to all programs usually using the total cost method.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate. We do not have an active and/or approved indirect cost rate agreement with the Federal Government. For the VA Supportive Services for Veteran Families (SSVF) program, we have opted to us the de minimis method in calculating indirect costs.
Adjoin 2023 elected to use the 10% de minimums cost rate as covered in the Uniform Guidance 2.CFR.200.414 Indirect costs.