Notes to SEFA
Title: NOTE 3 RELATIONSHIP OF THE SCHEDULE TO FINANCIAL REPORTS SUBMITTED TO GRA
Accounting Policies: NOTE 1 BASIS OF ACCOUNTING The accompanying schedule of expenditures of federal awards includes the federal grant activity of The Woodlands Religious Community, Inc. dba Interfaith of The Woodlands (Interfaith). Interfaith accounts for all awards under federal programs on an accrual basis of accounting. The information in this schedule is presented in accordance with requirements of the OMB Compliance Supplement. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in, the preparation of Interfaiths basic financial statements. Federal grant funds are considered to be earned to the extent of expenditures made under the provisions of the grant and, therefore, are received on a reimbursement basis from the federal program monitor.
De Minimis Rate Used: Y
Rate Explanation: NOTE 2 INDIRECT COST Expenditures included in the schedule represent both direct costs and indirect costs. Interfaith uses the10% de minimus indirect cost rate allowed under the Uniform Guidance.
Expenditures included in the schedule may differ from amounts reflected in the financial reports submitted to grant awarding agencies for the following reasons: Expenses accrued at the end of Interfaiths fiscal year may not be included in the financial reports submitted to grant awarding agencies until after year-end and Differences may exist between grant periods and Interfaiths accounting period.
Title: NOTE 4 CONTINGENCIES
Accounting Policies: NOTE 1 BASIS OF ACCOUNTING The accompanying schedule of expenditures of federal awards includes the federal grant activity of The Woodlands Religious Community, Inc. dba Interfaith of The Woodlands (Interfaith). Interfaith accounts for all awards under federal programs on an accrual basis of accounting. The information in this schedule is presented in accordance with requirements of the OMB Compliance Supplement. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in, the preparation of Interfaiths basic financial statements. Federal grant funds are considered to be earned to the extent of expenditures made under the provisions of the grant and, therefore, are received on a reimbursement basis from the federal program monitor.
De Minimis Rate Used: Y
Rate Explanation: NOTE 2 INDIRECT COST Expenditures included in the schedule represent both direct costs and indirect costs. Interfaith uses the10% de minimus indirect cost rate allowed under the Uniform Guidance.
Grants require the fulfillment of certain conditions set forth in grant agreements and are regularly monitored and reviewed by the grantors. Failure to satisfy the requirements of contact agreements could result in disallowed costs and return of funds to grantors. Management believes that Interfaith is in substantial compliance with grant provisions and requirements and that disallowed costs, if any, will not be significant to affect the amounts and disclosures in the financial statements.