Notes to SEFA
Title: NOTE 1 – BASIS OF PRESENTATION
Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards 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 to reimbursement.
De Minimis Rate Used: N
Rate Explanation: Meritan, Inc. has elected not to use the 10% de minimis indirect cost rate as allowed by Uniform Guidance.
The accompanying schedule of expenditures of federal awards includes the federal grant activity of
Meritan, Inc. The information in this 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). Therefore, some amounts presented in this
schedule may differ from amounts presented in, or used in the presentation of, the basic financial
statements.
Title: NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards 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 to reimbursement.
De Minimis Rate Used: N
Rate Explanation: Meritan, Inc. has elected not to use the 10% de minimis indirect cost rate as allowed by Uniform Guidance.
A. Expenditures reported on the schedule of expenditures of federal awards 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 to reimbursement.
B. Meritan, Inc. has elected not to use the 10% de minimis indirect cost rate as allowed by Uniform
Guidance.
C. The grant revenue amounts received and expensed (eligible for reimbursement) are subject to
audit adjustment. If any expenses are disallowed by the grantor as a result of such audit, any claim
for reimbursement to the grantor would become a liability of the Meritan, Inc. In the opinion of
management, all grant expenses (eligible for reimbursement) are in compliance with the terms of
the grant agreement and applicable federal and state laws and regulations.