Notes to SEFA
Title: Reconciliation of Expenditures of Federal Awards to the Financial Statements
Accounting Policies: General. The accompanying schedule of expenditures of federal awards (SEFA) presents the activity of all federal award programs of Nine Star Enterprises, Inc. (NSE). The information in the SEFA 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). Federal financial assistance received directly from federal agencies as well as federal financial assistance passed through other entities is included on the SEFA. NSE's reporting entity is defined in Note 1 to NSE's financial statements. Basis of Accounting. The accompanying SEFA is presented using the accrual basis of accounting, which is described in Note 1 of NSE's financial statements. 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, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Due to lack of availability of a State or Federal negotiated rate, NSE has elected to use to 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.
De Minimis Rate Used: Y
Rate Explanation: Due to lack of availability of a State or Federal negotiated rate, NSE has elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.
The following is a reconciliation of grant revenue reported in the financial statements to expenditures reported in the SEFA.
Total government grants as reported in the financial statements $ 1,649,666
Less: State grants (416,678)
Less: Local grants (188,399)
Total expenditures per the SEFA $ 1,044,589