Notes to SEFA
Title: NOTE A – Basis of Presentation
Accounting Policies: See attached sheet
De Minimis Rate Used: N
Rate Explanation: None
The schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Hearthway, Inc. and its subsidiary Berkshire Housing Services, Inc. under programs of the federal government for the year ended June 30, 2024. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR), Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Hearthway, Inc. and its subsidiary Berkshire Housing Services, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Hearthway, Inc. and its subsidiary Berkshire Housing Services, Inc.
Title: NOTE B – Summary of Significant Accounting Policies
Accounting Policies: See attached sheet
De Minimis Rate Used: N
Rate Explanation: None
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.
Title: NOTE C – Indirect Cost Rate
Accounting Policies: See attached sheet
De Minimis Rate Used: N
Rate Explanation: None
Hearthway, Inc. and its subsidiary Berkshire Housing Services, Inc. has elected not to use the 10% de minimis cost rate allowed under the Uniform Guidance.