Notes to SEFA
Accounting Policies: GENERAL INFORMATION
The accompanying schedule of expenditures of federal awards (“schedule”) presents the activities in all the federal financial assistance programs of Alternatives Homes 2005, Inc. (the “Project”). All financial assistance
received directly from federal agencies, as well as financial assistance passed through other governmental agencies or not-for-profit organizations, is included on the schedule.
2. BASIS OF ACCOUNTING
The accompanying schedule is presented using the accrual basis of accounting. The amounts reported in this schedule as expenditures may differ from certain financial reports submitted to federal funding agencies due to those reports being submitted on either a cash or modified accrual basis of accounting. Because the schedule presents only a selected portion of the operations of the Project, it is not intended to and does not present the financial position, changes in net assets (deficit), or cash flows of the Project.
3. RELATIONSHIP TO BASIC FINANCIAL STATEMENTS
Expenditures of federal awards are generally reported on the statement of activities and changes in net assets (deficit) as program services. In certain programs, the expenditures reported in the basic financial statements may differ from the expenditures reported in the schedule due to program expenditures exceeding grant or contract budget limitations, matching or in-kind contributions, or capitalization policies required under accounting principles generally accepted in the United States of America.
De Minimis Rate Used: N
Rate Explanation: The Project does not have a federal approved indirect cost rate, nor has it elected to use the 10% indirect cost rate allowed under federal guidelines.