Notes to SEFA
Accounting Policies: The Schedule of Expenditures of Federal Awards and Schedule of Expenditures of State Awards (the Schedules) include the federal and state grant activity of Arrow Child & Family Ministries (Arrow) under programs of the federal and state government for the year ended June 30, 2024. 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). The information in the Schedule of Expenditures of State Awards is presented in accordance with the requirements of the Texas Grant Management Standards (TxGMS). Because the Schedules present only a selected portion of the operations of Arrow Child & Family Ministries, they are not intended to and do not present the financial position, changes in net assets, or cash flows of Arrow. The Schedules are presented using the accrual basis of accounting. The expenditures are reported based on Arrow’s year-end. Expenditure reports to funding agencies are prepared based on award periods. See Note 1 of the Notes to the Consolidated Financial Statements for Arrow’s significant accounting policies.
De Minimis Rate Used: Y
Rate Explanation: Uniform Guidance allows non-federal entities, such as Arrow, to elect to charge a de minimis rate of ten percent of modified direct costs as its indirect cost rate that may be used indefinitely. Arrow chose to utilize the de minimis rate.