Notes to SEFA
Title: Note A--Basis of Preparation
Accounting Policies: The Agency has eleccted not to use the 15-percent de minimis indirect cost rate allowed under the Uniform Guidance for its federal grant programs.
De Minimis Rate Used: N
Rate Explanation: The Agency has eleccted not to use the 15-percent de minimis indirect cost rate allowed under the Uniform Guidance for its federal grant programs.
This schedule of expenditures of federal awards and state and other financial assistance includes the federal and State of Tennessee grant activity of Mid-East Community Action Agency (the Agency) and is presented on the accrual basis of accounting. 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 Fedeeral Awards (Uniform Guidance). Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in the preparation of the basic financial statements.
Title: Note B--Significant Accounting Policies
Accounting Policies: The Agency has eleccted not to use the 15-percent de minimis indirect cost rate allowed under the Uniform Guidance for its federal grant programs.
De Minimis Rate Used: N
Rate Explanation: The Agency has eleccted not to use the 15-percent de minimis indirect cost rate allowed under the Uniform Guidance for its federal grant programs.
De Minimis Indirect Cost Rate: The Agency has elected not to use the 15-percent de minimis indirect cost rate allowed under the Uniform Guidance for its federal grant programs.The Agency currently uses a negotiated indirect cost rate.
Title: Note C--Contingencies
Accounting Policies: The Agency has eleccted not to use the 15-percent de minimis indirect cost rate allowed under the Uniform Guidance for its federal grant programs.
De Minimis Rate Used: N
Rate Explanation: The Agency has eleccted not to use the 15-percent de minimis indirect cost rate allowed under the Uniform Guidance for its federal grant programs.
The Agency's federal programs are subject to financial and compliance audits by grantor agencies which, if instances of material noncompliance are found, may result in disallowed expenditures and affect the Agency's continued participation in specific programs. The amount, if any, of expenditures which may be disallowed by the grantor agencies cannot be determined at this time, although the Agency expects such amounts, if any, to be immaterial.