Notes to SEFA
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: MercyFirst has a provisional approval to use an indirect cost rate of 16% for all programs for the period from July 1, 2023 through June 30, 2024. The reimbursement of indirect costs reflected in the accompanying financial statements is subject to final approval by federal grantors and could be adjusted upon the results of these reviews. Management believes that the results of any such adjustments will not be material to MercyFirst’s financial position or change in net assets. MercyFirst
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 (the Schedule) includes the federal award activity of MercyFirst 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 MercyFirst, it is not intended to and does not
present the financial position, changes in net assets, or cash flows of MercyFirst.
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: MercyFirst has a provisional approval to use an indirect cost rate of 16% for all programs for the period from July 1, 2023 through June 30, 2024. The reimbursement of indirect costs reflected in the accompanying financial statements is subject to final approval by federal grantors and could be adjusted upon the results of these reviews. Management believes that the results of any such adjustments will not be material to MercyFirst’s financial position or change in net assets. MercyFirst
has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
MercyFirst has evaluated subsequent events occurring after the financial statements date of June 30, 2024 through the date of December 23, 2024, except for our report on the supplemental schedule of expenditures of federal awards, for which the subsequent events date is March 28 2025,
which is the date the financial statements were available to be issued. No events arose during the period that would require adjustment or additional disclosure.