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 allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: SUS has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. SUSs claims for indirect cost are limited to the amounts or rates allowed in the contract or budget.
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Services for the UnderServed, Inc. and Affiliated Organizations (SUS) under programs of the federal government for the year ended June 30, 2024. 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 SUS, it is not intended to and does not present the financial position, changes in net assets, or cash flows of SUS.
Title: Schedule
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 allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: SUS has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. SUSs claims for indirect cost are limited to the amounts or rates allowed in the contract or budget.
Amounts presented in the Schedule are presented in dollars; however, the amounts presented in the consolidated financial statements are presented in thousands.
Title: Federal Awards Expenditures Provided to 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 allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: SUS has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. SUSs claims for indirect cost are limited to the amounts or rates allowed in the contract or budget.
The Schedule includes $2,995,760 of federally awarded expenditures granted to subrecipients as identified in Note 6. SUS acts as an agent, and not a principal, to subrecipients by passing through the full grant amount of federal awards to subrecipients in accordance with Housing Preservation and Development (HPD) grant agreements. HPD have notified SUS that these amounts should be included on SUS's Schedule even with SUS acting as an agent for the transaction.
In relation to SUS’s consolidated financial statements for financial reporting purposes, SUS does not recognize revenue or incur expenses in relation to HPD pass-through grants to subrecipients when it is acting as the agent. Therefore, the pass-through grants of $2,995,760 to subrecipients were not reported as revenue or expenses on SUS's June 30, 2024 consolidated statement of activities.
Title: Entities Included in the Schedule
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 allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: SUS has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. SUSs claims for indirect cost are limited to the amounts or rates allowed in the contract or budget.
The accompanying Schedule includes the following entities as identified by employer identification number (EIN) and entity name. (See Notes to Schedule of Expenditures of Federal Awards Note 6 for detailed table).
Title: Disaster Grants-Public Assistance (Presidentially Declared Disasters)
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 allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: SUS has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. SUSs claims for indirect cost are limited to the amounts or rates allowed in the contract or budget.
Following a presidentially declared disaster, the Federal Emergency Management Agency (FEMA) declared Disaster Grants – Public Assistance (Presidentially Declared Disasters) in October 2012 to support recovery efforts for Disaster 4085 – Hurricane Sandy. As part of FEMA’s extended closeout process, a $4,645 payment adjustment was issued to SUS in the fiscal year ended June 30, 2024. Accordingly, this amount has been included in the Schedule of Expenditures of Federal Awards (SEFA) for the fiscal year ended June 30, 2024.
Title: Other
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 allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: SUS has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. SUSs claims for indirect cost are limited to the amounts or rates allowed in the contract or budget.
The accompanying Schedule presents federal expenditures of SUS. Expenditures of certain federal programs were awarded to Services for the UnderServed, Inc. and Palladia, Inc., (a wholly controlled entity of SUS) under their respective Employer Identification Number. Total expenditures of federal awards for Services for the UnderServed, Inc. and Palladia, Inc. (a wholly controlled entity of SUS) for the year ended June 30, 2024 are summarized below. (See Notes to Schedule of Expenditures of Federal Awards Note 8 for detailed table).
Title: Subsequent Events
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 allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: SUS has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. SUSs claims for indirect cost are limited to the amounts or rates allowed in the contract or budget.
SUS has evaluated subsequent events occurring after the consolidated financial statements date of June 30, 2024 through November 26, 2024, except for its report on the supplemental schedule of expenditures of federal awards, for which the subsequent events date is March 24, 2025, which is the date these consolidated financial statements were available to be issued. No events arose during those periods that would require adjustments or additional disclosures.