Notes to SEFA
Title: NOTE 2 FOOD COMMODITIES
Accounting Policies: Basis of presentation The schedules of expenditures of federal and state awards (the schedules) are prepared on the accrual basis of accounting. The information in these schedules is presented in accordance with the requirements of Title 2 U. S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and the State of Texas Single Audit Circular. Federal and state expenditures include allowable costs funded by federal and state grants. Allowable costs are subject to the cost principles of the Uniform Guidance, Department of the Treasury guidelines, and the State of Texas Uniform Grant Management Standards, and include both costs that are capitalized and costs that are recognized as expenses in Interfaith Ministries financial statements in conformity with generally accepted accounting principles. Indirect costs are reported utilizing Interfaith Ministries negotiated indirect cost rates; therefore, Interfaith Ministries does not use the 10% de minimis rate.Because the schedules present only a selected portion of the operations of Interfaith Ministries, they are not intended to and do not present the financial position, changes in net assets, or cash flows of Interfaith Ministries.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Food commodities are recognized as federal expenditures when distributed. Distributed food is reported in the schedule of expenditures of federal awards under the Emergency Food Assistance Program and is valued at the weighted-average wholesale value of one pound of donated product based on the national per pound price as provided by the most recent Feeding America Product Valuation Survey ($1.79 in 2022).