Notes to SEFA
Title: Note 1 – Basis of Presentation
Accounting Policies: Note 2 – Summary of Significant Accounting Policies
Expenditures – Expenditures identifiable with specific programs are
charged directly to the applicable program. Administrative personnel costs are allocated monthly based on the pro-rata share of the direct billable time for each grant/contract. Other shared costs (e.g., supplies, occupancy) are allocated to specific programs based upon the pro-rata share of the total number of programmatic staff working in each location and their full time equivalent for each grant/contract.
Equipment – Equipment costing less than $5,000 is recorded as an
expenditure of the applicable program when acquired. Property and
equipment costing $5,000 or more is capitalized and depreciated using the straight-line method over estimated useful lives ranging from three to five years.
Amounts Provided to Subrecipients – No federal awards were passed
through to subrecipients during the year ended September 30, 2023.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
The accompanying schedule of expenditures of federal awards includes the federal grant activity of Disability Rights California (DRC) and is presented on the accrual basis of accounting. The information in the schedule of expenditures of federal awards is presented in accordance with 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 of
expenditures of federal awards presents only a selected portion of the operations of DRC, it is not intended to, and does not present the financial position, changes in net assets, or cash flows of DRC.
Title: Note 3 – Indirect Cost Rate
Accounting Policies: Note 2 – Summary of Significant Accounting Policies
Expenditures – Expenditures identifiable with specific programs are
charged directly to the applicable program. Administrative personnel costs are allocated monthly based on the pro-rata share of the direct billable time for each grant/contract. Other shared costs (e.g., supplies, occupancy) are allocated to specific programs based upon the pro-rata share of the total number of programmatic staff working in each location and their full time equivalent for each grant/contract.
Equipment – Equipment costing less than $5,000 is recorded as an
expenditure of the applicable program when acquired. Property and
equipment costing $5,000 or more is capitalized and depreciated using the straight-line method over estimated useful lives ranging from three to five years.
Amounts Provided to Subrecipients – No federal awards were passed
through to subrecipients during the year ended September 30, 2023.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
The Uniform Guidance requires that all indirect costs be charged through the use of an approved indirect cost rate. When no indirect cost rate has been approved, the Uniform Guidance allows for a one-time election to use a 10% de minimis reimbursement rate. DRC does not have an approved
indirect cost rate and has elected to use the 10% de minimis
reimbursement rate as allowed under Uniform Guidance.
Title: Note 4 – Restatement of Previously Issued Schedule of Expenditures of Federal Awards
Accounting Policies: Note 2 – Summary of Significant Accounting Policies
Expenditures – Expenditures identifiable with specific programs are
charged directly to the applicable program. Administrative personnel costs are allocated monthly based on the pro-rata share of the direct billable time for each grant/contract. Other shared costs (e.g., supplies, occupancy) are allocated to specific programs based upon the pro-rata share of the total number of programmatic staff working in each location and their full time equivalent for each grant/contract.
Equipment – Equipment costing less than $5,000 is recorded as an
expenditure of the applicable program when acquired. Property and
equipment costing $5,000 or more is capitalized and depreciated using the straight-line method over estimated useful lives ranging from three to five years.
Amounts Provided to Subrecipients – No federal awards were passed
through to subrecipients during the year ended September 30, 2023.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
The schedule of expenditures of federal awards for the year ended September 30, 2023, has been revised to include federal expenditures for Federal Assistance Listing Number 21.027 in the amount of $2,369,463. The total expenditures of federal awards was restated from $18,242,982 to $20,612,445.