Notes to SEFA
Title: Basis of Presentation:
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expendituresare recognized following the cost principles contained in Uniform Guidance, wherein certain types ofexpenditures are not allowable or are limited as to reimbursement. Congregation Ahavath Chesed haselected to use the ten percent de minimis indirect cost rate allowed under the Uniform Guidance.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grantactivity of Congregation Ahavath Chesed (the School) under programs of the federal government for theyear ended July 31, 2022. The information in this schedule is presented in accordance with therequirements of Title 2 U.S. Code of Federal Regulations (CFR), Uniform Administrative Requirements, CostPrinciples, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedulepresents only a selected portion of the operations of the School, it is not intended to and does not presentthe financial position, changes in net assets, or cash flows of the School.
Title: Child Nutrition Program:
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expendituresare recognized following the cost principles contained in Uniform Guidance, wherein certain types ofexpenditures are not allowable or are limited as to reimbursement. Congregation Ahavath Chesed haselected to use the ten percent de minimis indirect cost rate allowed under the Uniform Guidance.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
Congregation Ahavath Chesed was approved by the State of New Jerseys Department of Agriculture,under the National School Lunch Act and Child Nutrition Act of 1966, to operate the Child NutritionProgram which includes both the School Breakfast Program and the National School Lunch Program. Theprogram enables the School to offer free and reduced-priced meals to eligible students.
Title: Use of Estimates:
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expendituresare recognized following the cost principles contained in Uniform Guidance, wherein certain types ofexpenditures are not allowable or are limited as to reimbursement. Congregation Ahavath Chesed haselected to use the ten percent de minimis indirect cost rate allowed under the Uniform Guidance.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
The preparation of financial statements in conformity with generally accepted accounting principlesrequires management to make estimates and assumptions that affect certain reported amounts anddisclosures. Accordingly, actual results could differ from those estimates.
Title: Subsequent Events:
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expendituresare recognized following the cost principles contained in Uniform Guidance, wherein certain types ofexpenditures are not allowable or are limited as to reimbursement. Congregation Ahavath Chesed haselected to use the ten percent de minimis indirect cost rate allowed under the Uniform Guidance.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
Management considers events and transaction that occur after the financials statement date, but beforethe financial statements are issued, to provide additional evidence relative to certain estimates or toidentify matters that require additional disclosure. These financial statements were available to be issuedon February 15, 2023, and subsequent events have been evaluated through the date.