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 Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: TFD has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.
The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of The Food Depot (TFD) under programs of the federal government for the year ended June 30, 2024. Because the Schedule presents only a selected portion of the operations of TFD, it is not intended to and does not present the financial position, changes in net assets, or cash flows of TFD.
Title: Non-Cash Assistance
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 Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: TFD has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.
Non‐cash assistance recorded in the Schedule consists of food commodities donated by the USDA (The Emergency Food Assistance Program, or TEFAP, ALN 10.569) and passed through the New Mexico Human Services Department to TFD. The donated food commodities are valued at the estimated fair value of $1.97 per pound (as valued by Feeding America). TFD’s accounting policy for donated inventories is more fully described in Note 2 to the financial statements and follows accounting principles generally accepted in the United States of America. Food commodities reported in the Schedule are further passed through from TFD to subrecipients (emergency food pantries, group homes, low‐income day care centers, shelters, and soup kitchens).
Donated food commodities inventory at June 30, 2024 is reported in the financial statements (Note 6) at $1,180,767 using an estimated fair value of $1.97 per pound.
Title: Reconciliation of the Schedule to the Financial Statements
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 Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: TFD has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.
The following is a reconciliation of the expenditures reported in the Schedule to the federal and state grants revenue and federal donated food commodities reported in the financial statements: