Notes to SEFA
Title: Reconciliation
Accounting Policies: Basis of Presentation The accompanying schedule of federal and state awards (the Schedule) includes federal and state grant activity of SMH , Inc. and SMHF under programs of the federal and state government for the year ended August 31, 2024. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirments, Cost Principles, and Audit Requirments for Federal Awards, the State of Texas Uniform Grants Management Standards and State of Texas Single Audit Circular. Because the Schedule presents only a selected portion of the opeation of SMH, Inc. and SMHF, it is not intended to and does not present the financial position, changes in net assets or cash flows of SMH, Inc. and SMHF. Summary of Significant Accounting Policies Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such as expenditures are recognized following the cost principles contained in the Uniform Guidance, Cost Principles for Non-profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass- through entity identifying numbers are presented where available. Indirect Cost rate SMH Inc. and SMHF utilize the 10% de minimus indirect cost rate allowed under the Uniform Guidance for awards which do not allow utilization of the approved SMH cost allocation plan.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimus cost rate for awards which did not utilize approved cost allocation.
The following is a reconciliation of total federal and state awards expenditures reported in the Schedule of Expenditures of Federal and State Awards (SEFSA) to the federal and state assistance revenue recognized in the consolidated statement of activities: The difference between the amounts reported in the SEFSA and the consolidated statement of activities is due to awards that were received through local governmental agencies. These amounts are reported as revenue as state and local assistance in the consolidated statement of activities in accordance with the Organization's revenue recognition policies but are not included in the SEFSA.