Notes to SEFA
Accounting Policies: Basis of AccountingThe basis of accounting varies by federal program consistent with the underlying regulationspertaining to each program.The amounts reported as federal expenditures generally were obtained from the appropriatefederal financial reports for the applicable program and periods. The amounts reported in thesefederal financial reports are prepared from records maintained for each program. These recordsare periodically reconciled to the general ledger which is the source of the general purposefinancial statements. Such expenditures are recognized following the cost principles containedin the Uniform Guidance, wherein certain types of expenditures are not allowable or are limitedas to reimbursement.Disallowances/adjustmentsNegative amounts shown on the Schedule of Expenditures of Federal Awards (when applicable)represent adjustments or credits made in the normal course of business to amounts reported asexpenditures in prior years.Indirect CostsIndirect costs are included in the reported expenditures to the extent they are included in thefederal financial reports used as the source of the data presented. Under the Uniform Guidance,absent to an agreed upon indirect cost rate, the Agency must elect to use the 10-percent deminimis indirect cost rate as allowed under the Uniform Guidance.Matching CostsMatching costs (i.e. the Agencys share of certain program costs) are not included in the reportedexpenditures.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.