Notes to SEFA
Title: BASIS OF PRESENTATION
Accounting Policies: Basis of Accounting 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 allowable or are limited as to reimbursement. Funds Receivable - Federal Grants and Contracts STEP incurs grant and contract expenditures in accordance with the grant or contract terms and conditions. STEP records these expenditures and establishes receivables and revenue due from its various funding sources on the accrual basis. Refundable Advances - Federal Grants and Contracts STEP records a restricted grant or contract award as a refundable advance until it is expended for the purpose of the grant or contract, at which time it becomes unconditional and is recognized as revenue. Therefore, the amounts presented as refundable advances represent unexpended grant or contract funds. Functional Expenses Expenses are charged to each program based on direct expenditures incurred. All program expenditures are direct charged and allocated based on agency allocation methods.
De Minimis Rate Used: N
Rate Explanation: STEP has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
The accompanying schedule of expenditures of federal awards (Schedule) include the
federal award activity of Lycoming-Clinton Counties Commission for Community Action
(STEP), Inc. (STEP) for the year ended June 30, 2024. 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 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
STEP, it is not intended to and does not present the financial position, changes in net
assets, or cash flows of STEP.