Notes to SEFA
Title: Note 1 - Basis of Presentation
Accounting Policies: Expenditures reported in the SEFA are reported on the accrual basis of accounting. Such
expenditures are recognized following the cost principles contained in Uniform Guidance,
wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: Y
Rate Explanation: The Institute has elected to use the default 10% de minimis indirect cost rate allowed under the
Uniform Guidance.
The accompanying Schedule of Expenditures of Federal Awards includes the federal grant
activity of National Institute of Minority Economic Development (the “Organization”) under the
programs of the federal government and the State of North Carolina for the year ended
December 31, 2023. This 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.
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 assets or cash flows of
the Institute.
Title: Note 2 - Summary of Significant Accounting Policies
Accounting Policies: Expenditures reported in the SEFA are reported on the accrual basis of accounting. Such
expenditures are recognized following the cost principles contained in Uniform Guidance,
wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: Y
Rate Explanation: The Institute has elected to use the default 10% de minimis indirect cost rate allowed under the
Uniform Guidance.
Expenditures reported in the SEFA are reported on the accrual basis of accounting. Such
expenditures are recognized following the cost principles contained in Uniform Guidance,
wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Title: Note 3 - Indirect Cost rate
Accounting Policies: Expenditures reported in the SEFA are reported on the accrual basis of accounting. Such
expenditures are recognized following the cost principles contained in Uniform Guidance,
wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: Y
Rate Explanation: The Institute has elected to use the default 10% de minimis indirect cost rate allowed under the
Uniform Guidance.
The Institute has elected to use the default 10% de minimis indirect cost rate allowed under the
Uniform Guidance.
Title: Note 4 – Federal expenditures of affiliated entity
Accounting Policies: Expenditures reported in the SEFA are reported on the accrual basis of accounting. Such
expenditures are recognized following the cost principles contained in Uniform Guidance,
wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: Y
Rate Explanation: The Institute has elected to use the default 10% de minimis indirect cost rate allowed under the
Uniform Guidance.
The accompanying schedule of federal and state awards excludes the federal expenditures of
Institute Capital, Inc., an affiliated entity. These expenditures are reported in the schedule of
expenditures of federal awards accompanying Institute Capital, Inc.' s separately-issued audited
financial statements for the year ended December 31, 2023.