Notes to SEFA
Title: NOTE A - BASIS OF PRESENTATION
Accounting Policies: 1. Basis of Accounting - The Organization prepares their financial statements on the accrual basis of accounting, following accounting principles generally accepted in the United States of America for nonprofit organizations. 2. Basis of Presentation - The Organization reports information regarding its financial position and activities according to two classes of net assets: Without donor restrictions - Not subject to donor-imposed stipulations. With donor restrictions - Subject to donor-imposed stipulations. It is the policy of the Board of Directors to review the Organization’s plans for future expenditures from time to time and to designate appropriate sums of net assets without donor restrictions to assure adequate funding.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of FavorHouse of Northwest Florida, 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 Part 200, 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 FavorHouse of Northwest Florida, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of FavorHouse of Northwest Florida, Inc.
Title: NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Policies: 1. Basis of Accounting - The Organization prepares their financial statements on the accrual basis of accounting, following accounting principles generally accepted in the United States of America for nonprofit organizations. 2. Basis of Presentation - The Organization reports information regarding its financial position and activities according to two classes of net assets: Without donor restrictions - Not subject to donor-imposed stipulations. With donor restrictions - Subject to donor-imposed stipulations. It is the policy of the Board of Directors to review the Organization’s plans for future expenditures from time to time and to designate appropriate sums of net assets without donor restrictions to assure adequate funding.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate
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. The Organization’s federal awards do not have any loans or loan guarantees. The Organization did not receive any federal non-cash assistance for the fiscal year ended June 30, 2024.
Title: NOTE C - SUBRECIPIENTS
Accounting Policies: 1. Basis of Accounting - The Organization prepares their financial statements on the accrual basis of accounting, following accounting principles generally accepted in the United States of America for nonprofit organizations. 2. Basis of Presentation - The Organization reports information regarding its financial position and activities according to two classes of net assets: Without donor restrictions - Not subject to donor-imposed stipulations. With donor restrictions - Subject to donor-imposed stipulations. It is the policy of the Board of Directors to review the Organization’s plans for future expenditures from time to time and to designate appropriate sums of net assets without donor restrictions to assure adequate funding.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate
FavorHouse of Northwest Florida, Inc. did not have any subrecipients for the year ended June 30, 2024.
Title: NOTE D - INDIRECT COST RATE
Accounting Policies: 1. Basis of Accounting - The Organization prepares their financial statements on the accrual basis of accounting, following accounting principles generally accepted in the United States of America for nonprofit organizations. 2. Basis of Presentation - The Organization reports information regarding its financial position and activities according to two classes of net assets: Without donor restrictions - Not subject to donor-imposed stipulations. With donor restrictions - Subject to donor-imposed stipulations. It is the policy of the Board of Directors to review the Organization’s plans for future expenditures from time to time and to designate appropriate sums of net assets without donor restrictions to assure adequate funding.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate
The Organization has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.