Notes to SEFA
Title: GENERAL INFORMATION
Accounting Policies: The accompanying schedule of expenditures of federal awards and city awards is presented using the accrual basis of accounting. The amounts reported in the schedule as expenditures may differ from certain financial reports submitted to federal and city funding agencies due to those reports being submitted on either a cash or modified accrual basis of accounting.
De Minimis Rate Used: Y
Rate Explanation: The 10% de minimis rate was used in two of the federal awards.
The accompanying schedule of expenditures of federal awards and city awards presents the activities in all the federal and city awards programs of Philabundance. The information in this schedule of federal awards and city awards is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Costs Principles, and Audit Requirements for Federal Awards and City of Philadelphia Subrecipient Audit Guide. All financial assistance received directly from federal and city agencies, as well as financial assistance passed through other governmental agencies or nonprofit organizations, is included on the schedule.
Title: RELATIONSHIP TO BASIC CONSOLIDATED FINANCIAL STATEMENTS
Accounting Policies: The accompanying schedule of expenditures of federal awards and city awards is presented using the accrual basis of accounting. The amounts reported in the schedule as expenditures may differ from certain financial reports submitted to federal and city funding agencies due to those reports being submitted on either a cash or modified accrual basis of accounting.
De Minimis Rate Used: Y
Rate Explanation: The 10% de minimis rate was used in two of the federal awards.
Federal and city awards are reported on the consolidated statement of functional expenses as program expenses. In certain programs, the expenditures reported in the basic consolidated financial statements may differ from the expenditures reported in the schedule of expenditures reported in the schedule of expenditures of federal awards and city awards due to program expenditures exceeding grant or contract budget limitations or agency matching or in-kind contributions which are not included as federal awards and city financial assistance. Donated commodities received that have not been distributed are shown as inventory in the consolidated statement of financial position. Donated commodities that have been distributed are shown in the consolidated statement of functional expenses as donated food and nonfood. Distributed food is released from inventory at the fair value on the date of distribution. Due to the generally short periods between receipt of food donations and their subsequent distributions, the fair value on the date of receipt generally approximates the fair value on the date of distribution.
Title: FEDERAL DONATED COMMODITIES
Accounting Policies: The accompanying schedule of expenditures of federal awards and city awards is presented using the accrual basis of accounting. The amounts reported in the schedule as expenditures may differ from certain financial reports submitted to federal and city funding agencies due to those reports being submitted on either a cash or modified accrual basis of accounting.
De Minimis Rate Used: Y
Rate Explanation: The 10% de minimis rate was used in two of the federal awards.
The value of nonmonetary assistance in the form of donated commodities is reported in the schedule of expenditures of federal awards and city awards when distributed based on the value of the commodities when received. This value is generally fair value on the date of receipt but may be an assessed value if provided by the Department of Agriculture. At June 30, 2024, Philabundance had federal food commodities totaling $1,463,704 recorded in inventory that are available for distribution during the subsequent fiscal year.