Notes to SEFA
Title: Basis of Presentation
Accounting Policies: Expenditures reported on the SEFA 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.
De Minimis Rate Used: N
Rate Explanation: The Association has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
The accompanying schedule of expenditures of federal awards (SEFA) includes the federal award activity of the National Legal Aid & Defender Association and Subsidiary (the Association) under programs of the federal government for the year ended December 31, 2023. The information on the SEFA is presented in accordance with the requirements of 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 SEFA presents only a selected portion of 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: Grant Expenditure Disallowance
Accounting Policies: Expenditures reported on the SEFA 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.
De Minimis Rate Used: N
Rate Explanation: The Association has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
On June 12, 2024, NLADA received a letter from AmeriCorps stating they had identified a disallowable expenditure in the amount of $59,205 related to grant #18VSADC001 under assistance listing number 94.013. This amount is not included in the SEFA and has never been audited as a major program. This disallowance was identified during the Office of Monitoring’s National Service Criminal History Checks monitoring activities. On July 12, 2024, NLADA signed a promissory note agreement with AmeriCorps to repay the full amount of $59,205, starting on July 30, 2024, and continuing through April 30, 2027, in quarterly installments of $4,934.