Notes to SEFA
Title: NOTE 1 BASIS OF PRESENTATION
Accounting Policies: Expenditures 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. Program expenditures in excess of the maximum reimbursement authorized or the program expenditures that were funded with nonfederal funds are excluded from the Schedule.
De Minimis Rate Used: N
Rate Explanation: WHC is allowed to use a provisional indirect cost rate of 23.9% for specific programs related to grants, contract and agreements with federal government for the year ended December 31, 2023, and therefore does not use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of Watts Healthcare Corporation (WHC) under programs of the federal government for the year ended December 31, 2023. The information in the Schedule 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 Schedule presents only a selected portion of the operations of WHC, it is not intended to and does not present the financial position, changes in net assets, or cash flows of WHC as of and for the year ended December 31, 2023.
Title: NOTE 2 BASIS OF ACCOUNTING
Accounting Policies: Expenditures 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. Program expenditures in excess of the maximum reimbursement authorized or the program expenditures that were funded with nonfederal funds are excluded from the Schedule.
De Minimis Rate Used: N
Rate Explanation: WHC is allowed to use a provisional indirect cost rate of 23.9% for specific programs related to grants, contract and agreements with federal government for the year ended December 31, 2023, and therefore does not use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
Expenditures 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. Program expenditures in excess of the maximum reimbursement authorized or the program expenditures that were funded with nonfederal funds are excluded from the Schedule.
Subject to limitations, WHC is allowed to use a provisional indirect cost rate of 23.9% for specific programs related to grants, contract and agreements with federal government for the year ended December 31, 2023, and therefore does not use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: NOTE 3 RELATIONSHIP OF SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS TO THE FINANCIAL STATEMENTS
Accounting Policies: Expenditures 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. Program expenditures in excess of the maximum reimbursement authorized or the program expenditures that were funded with nonfederal funds are excluded from the Schedule.
De Minimis Rate Used: N
Rate Explanation: WHC is allowed to use a provisional indirect cost rate of 23.9% for specific programs related to grants, contract and agreements with federal government for the year ended December 31, 2023, and therefore does not use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
Consistent with management’s policy, federal awards are recorded in various revenue categories. As a result, the amount of total federal awards expended on the Schedule does not agree with the total grants and contracts revenue on the statement of activities as presented in WHC’s audited financial statements as of and for the year ended December 31, 2023.