Notes to SEFA
Title: A
Accounting Policies: BASIS OF ACCOUNTING - Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements. Basis of accounting relates to the timing of the measurements made, regardless of the measurement focus applied. The information presented in the Schedule of Expenditures of Federal Awards has been prepared using the modified accrual basis of accounting. Revenues are recognized when they become both measurable and available to finance expenditures of the current period. Expenditures are recognized when the related liability is incurred except for: (1) inventories of materials and supplies which are considered expenditures when consumed; (2) accumulated unpaid sick pay and other employee benefits which are not accrued; and (3) principal and interest on long-term debts which is generally recognized when due.
De Minimis Rate Used: N
Rate Explanation: Not applicable
Basis of Presentation - The information in the accompanying Schedule of Expenditures of Federal Awards is presented in accordance with Title 2 U.S. Code of Federal Regulations (CFR) Uniform Administration Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance).
1. Federal Awards - According to the Single Audit Act Amendments of 1996 (Public Law 104-156) and the Uniform Guidance, Federal Awards consist of Federal financial assistance and Federal cost-reimbursement contracts that non-Federal entities receive directly from Federal awarding agencies or indirectly from pass-through entities.
2. Federal Financial Assistance - Pursuant to the Single Audit Act Amendments of 1996 (Public Law 104-156) and the Uniform Guidance, Federal financial assistance is defined as assistance that non-Federal entities receive or administer in the form of grants, loans, loan guarantees, property (including donated surplus property), cooperative agreements, interest subsidies, insurance, food commodities, direct appropriations, and other assistance.
3. Major Programs - A risk-based approach to determine which Federal programs are major programs is required. Federal programs are classified as either Type A or Type B programs. The dollar threshold used to distinguish between Type A and Type B programs is $750,000.
4. Indirect Costs – Management has not elected to use the 10% de minimus indirect cost rule under uniform guidance.