Notes to SEFA
Accounting Policies: 1. Basis of PresentationThe accompanying schedule of expenditures of federal awards (SEFA) includes thefederal award activity of the Theatre under the programs of the federal government forthe year ended August 31, 2022. The information in the SEFA is presented in accordancewith the requirements of Title 2 U.S. Code of Federal Regulations Part 200, UniformAdministrative Requirements, Cost Principles, and Audit Requirements for FederalAwards (Uniform Guidance). Because the SEFA presents only a selected portion of theoperations of the Theatre, it is not intended to, and does not, present the financialposition, changes in net assets, or cash flows of the Theatre.2. Summary of Significant Accounting PoliciesExpenditures reported on the SEFA are reported on the accrual basis of accounting. Suchexpenditures are recognized following the cost principles contained in the UniformGuidance, where certain types of expenditures are not allowable or are limited as toreimbursement.3. Indirect Cost RateThe Theatre records its expenditures of federal awards using the indirect cost and fringebenefit rate per the nonprofit rate agreement with the federal government, which wasapproved in accordance with the authority of the Uniform Guidance.In this manner, the Theatre has elected not to use the 10% de minimis indirect cost rate asallowed under the Uniform Guidance.4. Assistance Listing NumberThe National Capital Arts and Cultural Affairs (NCACA) Grant program from theCommission of Fine Arts does not have an Assistance Listing Number (ALN).Therefore, the ALN presented on the SEFA follows the format required by Form SFSAC(the data collection form), which is submitted to the Federal Audit Clearinghouse
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.