Notes to SEFA
Title: NOTE 1 – BASIS OF PRESENTATION
Accounting Policies: See Note 2
De Minimis Rate Used: Both
Rate Explanation: See Note 3
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 Signal Centers, Inc., it is not intended to and does not present the financial
position, changes in net assets, or cash flows of Signal Centers, Inc..
Title: NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Policies: See Note 2
De Minimis Rate Used: Both
Rate Explanation: See Note 3
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.
Title: NOTE 3 – INDIRECT COST RATE
Accounting Policies: See Note 2
De Minimis Rate Used: Both
Rate Explanation: See Note 3
Signal Centers, Inc. has elected to use the indirect cost allocation method approved by the Tennessee
Department of Human Services, its cognizant agency, based on modified direct program expenses. This
modification excludes any subrecipients of grant funding as a direct expense since those agencies are
allowed an indirect cost in their award. This method is applied to all programs unless indirect costs are
prohibited. This rate was used on the Child Care Development Block Grant.