Notes to SEFA
Title: NOTE A - BASIS OF PRESENTATION
Accounting Policies: See notes.
De Minimis Rate Used: Y
Rate Explanation: See note C.
The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity
of Hope Christian Health Center (the Center) 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 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 Center, it is not intended to and does not present the financial position, changes
in net assets or cash flows for the Center.
For purposes of the Schedule, federal awards include all grants and contracts entered into directly between the
Center, agencies, and departments of the federal government. The awards are classified into major program
categories in accordance with the provisions of the Uniform Grant Guidance.
Title: NOTE B - BASIS OF ACCOUNTING
Accounting Policies: See notes.
De Minimis Rate Used: Y
Rate Explanation: See note C.
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 (CFR) 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 course of business to amounts
reported as expenditures in prior years.
Title: NOTE C - INDIRECT COST RATE
Accounting Policies: See notes.
De Minimis Rate Used: Y
Rate Explanation: See note C.
The Center elected to use the ten percent federal de minimis cost rate allowed under Title 2 U. S. Code of Federal
Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for
Federal Awards (Uniform Guidance) when applicable.
Title: NOTE D - RELATIONSHIP OF SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS TO
FINANCIAL STATEMENTS
Accounting Policies: See notes.
De Minimis Rate Used: Y
Rate Explanation: See note C.
Consistent with management’s policy, federal awards and other grants are recorded in respective revenue
categories. As result, the amount of total federal awards expended on the Schedule does not agree to total grant
revenue on the Statement of Operations and Changes in Net Assets as presented in the Center’s report on the
audited financial statements.