Notes to SEFA
Title: BASIS OF PRESENTATION
Accounting Policies: Expenditures reported on the Schedule 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 as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: PENCIL has elected not to use the 10-percent de minims indirect cost rate as allowed under the Uniform Guidance, however, no indirect costs have been charged to PENCIL’s grants.
The accompanying Schedules of Expenditures of Federal Awards (the “Schedule”) includes the federal
grant activity of PENCIL and is presented on the accrual basis of accounting. The information in the
Schedule of Expenditures of Federal Awards 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”) and the Audit Manual
issued by the Comptroller of the Treasury of the State of Tennessee. Because the Schedule presents only
a selected portion of the operations of PENCIL, it is not intended to and does not present the financial
position, changes in net assets, or cash flows of PENCIL.
Title: SUBRECIPIENTS
Accounting Policies: Expenditures reported on the Schedule 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 as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: PENCIL has elected not to use the 10-percent de minims indirect cost rate as allowed under the Uniform Guidance, however, no indirect costs have been charged to PENCIL’s grants.
PENCIL passed through $1,658,098 of federal awards to subrecipients.