Title: Note A - 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 Title 2 U.S. Code of Federal
Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for
Federal Awards, wherein certain types of expenditures may or may not be allowable or may be limited as
to reimbursement.
De Minimis Rate Used: Y
Rate Explanation: The Organization has implemented a Cost Allocation methodology for indirect costs to bill directly for the
portion of indirect costs attributed to certain grants. For grant sources which do not allow cost allocation,
the Organization has elected to use the 10-percent de minimis indirect cost rate as allowed under the
Uniform Guidance.
The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal
award activity of Rural Action, Inc. (a nonprofit organization) (the Organization) under programs of the
federal government for the year ended December 31, 2023. The information on this Schedule is
prepared 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 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 position, or
cash flows of the Organization.
Title: Note B - Summary of Significant Accounting 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 Title 2 U.S. Code of Federal
Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for
Federal Awards, wherein certain types of expenditures may or may not be allowable or may be limited as
to reimbursement.
De Minimis Rate Used: Y
Rate Explanation: The Organization has implemented a Cost Allocation methodology for indirect costs to bill directly for the
portion of indirect costs attributed to certain grants. For grant sources which do not allow cost allocation,
the Organization has elected to use the 10-percent de minimis indirect cost rate as 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 Title 2 U.S. Code of Federal
Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for
Federal Awards, wherein certain types of expenditures may or may not be allowable or may be limited as
to reimbursement.
Title: Note C - Indirect Cost Rate
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 Title 2 U.S. Code of Federal
Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for
Federal Awards, wherein certain types of expenditures may or may not be allowable or may be limited as
to reimbursement.
De Minimis Rate Used: Y
Rate Explanation: The Organization has implemented a Cost Allocation methodology for indirect costs to bill directly for the
portion of indirect costs attributed to certain grants. For grant sources which do not allow cost allocation,
the Organization has elected to use the 10-percent de minimis indirect cost rate as allowed under the
Uniform Guidance.
The Organization has implemented a Cost Allocation methodology for indirect costs to bill directly for the
portion of indirect costs attributed to certain grants. For grant sources which do not allow cost allocation,
the Organization has elected to use the 10-percent de minimis indirect cost rate as allowed under the
Uniform Guidance.
Title: Note D - Subrecipients
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 Title 2 U.S. Code of Federal
Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for
Federal Awards, wherein certain types of expenditures may or may not be allowable or may be limited as
to reimbursement.
De Minimis Rate Used: Y
Rate Explanation: The Organization has implemented a Cost Allocation methodology for indirect costs to bill directly for the
portion of indirect costs attributed to certain grants. For grant sources which do not allow cost allocation,
the Organization has elected to use the 10-percent de minimis indirect cost rate as allowed under the
Uniform Guidance.
The Organization passes certain federal awards received from Appalachian Regional Commission and
other federal agencies to other not-for-profit agencies (subrecipients). As Note B describes, the
Organization reports expenditures of Federal awards to subrecipients on an accrual basis of accounting.
As a subrecipient, the Organization has certain compliance responsibilities, such as monitoring its
subrecipient to help assure they use this subaward as authorized by laws, regulations, and the provisions
of contracts or grant agreements, and that subrecipients achieve the award’s performance goals.
Title: Note E - Matching Requirements
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 Title 2 U.S. Code of Federal
Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for
Federal Awards, wherein certain types of expenditures may or may not be allowable or may be limited as
to reimbursement.
De Minimis Rate Used: Y
Rate Explanation: The Organization has implemented a Cost Allocation methodology for indirect costs to bill directly for the
portion of indirect costs attributed to certain grants. For grant sources which do not allow cost allocation,
the Organization has elected to use the 10-percent de minimis indirect cost rate as allowed under the
Uniform Guidance.
Certain Federal programs require the Organization to contribute non-Federal funds (matching funds) to
support the Federally-funded programs. The Organization has met its matching requirements. The
Schedule does not include the expenditure of non-Federal matching funds.