Notes to SEFA
Title: Basis Of Presentation
Accounting Policies: See notes to the SEFA
De Minimis Rate Used: Y
Rate Explanation: Auditee used the de minimis cost rate
The schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Literacy Kansas City (the Organization) under programs of the federal government for the year ended June 30, 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 Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization.
Title: Summary of Significant Accounting Policies
Accounting Policies: See notes to the SEFA
De Minimis Rate Used: Y
Rate Explanation: Auditee used the de minimis cost rate
Expenditures on the Schedule 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: Indirect Cost Rate
Accounting Policies: See notes to the SEFA
De Minimis Rate Used: Y
Rate Explanation: Auditee used the de minimis cost rate
The Organization was granted an indirect cost reimbursement rate of 18% in their "Non-Profit Rate Agreement" letter dated August 22, 2022.
Title: Additional Audits
Accounting Policies: See notes to the SEFA
De Minimis Rate Used: Y
Rate Explanation: Auditee used the de minimis cost rate
Grantor and regulatory agencies reserve the right to conduct additional audits of the Organization’s grant programs. Such audits may result in disallowed costs to the Organization. However, management does not believe that such audits would result in any disallowed costs that would be material to the Organization’s financial position at June 30, 2023.