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 the Uniform Guidance, wherein certain types of
expenditures are not allowed or are limited as to reimbursement. The amounts reported in the Schedule as expenditures may differ from certain financial reports submitted to federal agencies due to those reports being submitted on either a cash or modified accrual basis of accounting.
De Minimis Rate Used: N
Rate Explanation: The Organization does not have a federally negotiated indirect cost rate on its federal contracts and has not made an election pursuant to Uniform Guidance to receive a 10% de minimis cost rate.
The accompanying schedule of expenditures of federal awards and state financial assistance (the “Schedule”) includes the federal and state award activity of New Community Corporation and Affiliates (the “Organization”) under programs of the federal and state governments for the year ended December 31, 2023. 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 the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization. The Organization’s contracts with the federal agencies do not have a provision for an
indirect cost rate.
The Organization’s consolidated financial statements include other organizational units expending $750,000 or
more in Federal awards that have separate Uniform Guidance audits which are not included in this audit.
Title: SUBRECIPIENTS
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 the Uniform Guidance, wherein certain types of
expenditures are not allowed or are limited as to reimbursement. The amounts reported in the Schedule as expenditures may differ from certain financial reports submitted to federal agencies due to those reports being submitted on either a cash or modified accrual basis of accounting.
De Minimis Rate Used: N
Rate Explanation: The Organization does not have a federally negotiated indirect cost rate on its federal contracts and has not made an election pursuant to Uniform Guidance to receive a 10% de minimis cost rate.
The Organization provided federal awards to subrecipients for the year ended December 31, 2023 in the amount
of $838,631, all of which were provided to consolidated affiliates.