Notes to SEFA
Title: Note 1. 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. Amounts passed through to subrecipients are reported on the accrual basis. In accordance with
certain grant awards approved by funding sources, property and equipment expenditures are charged to expense in the period
during which the assets are purchased instead of being recognized as an asset and depreciated over its useful life for grant
reporting purposes. As a result, the expenses reflected on the Schedule of Expenditures of Federal Awards include the cost of
property and equipment purchased during the year rather than a provision for depreciation. Therefore, some amounts presented
in the schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.
De Minimis Rate Used: N
Rate Explanation: The Agency has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.
The accompanying schedule of expenditures of federal awards includes the federal award activity of Area Agency of Aging, PSA
2 (the "Agency"). 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). Because the Schedule presents only a selected portion of the operations of the Agency, it is not
intended to and does not present the financial position, changes in net assets, or cash flows of the Agency for the year ended
December 31, 2023.
Title: Note 2. SUMMARY OF SIGNIFICANT ACOUNTING POLICIES:
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. Amounts passed through to subrecipients are reported on the accrual basis. In accordance with
certain grant awards approved by funding sources, property and equipment expenditures are charged to expense in the period
during which the assets are purchased instead of being recognized as an asset and depreciated over its useful life for grant
reporting purposes. As a result, the expenses reflected on the Schedule of Expenditures of Federal Awards include the cost of
property and equipment purchased during the year rather than a provision for depreciation. Therefore, some amounts presented
in the schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.
De Minimis Rate Used: N
Rate Explanation: The Agency has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.
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. Amounts passed through to subrecipients are reported on the accrual basis. In accordance with
certain grant awards approved by funding sources, property and equipment expenditures are charged to expense in the period
during which the assets are purchased instead of being recognized as an asset and depreciated over its useful life for grant
reporting purposes. As a result, the expenses reflected on the Schedule of Expenditures of Federal Awards include the cost of
property and equipment purchased during the year rather than a provision for depreciation. Therefore, some amounts presented
in the schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.