Notes to SEFA
Title: Basis of Accounting
Accounting Policies: The schedule of expenditures of federal awards includes the federal grant activity of the Agency and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of OMB Uniform Guidance. Of the federal expenditures presented in the schedule, the Agency provided federal awards to subrecipients as indicated above.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The accounting records of the Agency are maintained on the accrual basis of accounting. Revenues are reported when earned and expenses are reported as incurred.
The Agency is required to report to the Illinois Department on Aging on an Agency wide basis. Agency-wide basis includes the actual revenues and expenses of the local projects together with the Agency.
Title: Basis of Presentation
Accounting Policies: The schedule of expenditures of federal awards includes the federal grant activity of the Agency and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of OMB Uniform Guidance. Of the federal expenditures presented in the schedule, the Agency provided federal awards to subrecipients as indicated above.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Agency presents its financial statements in accordance with Financial Accounting
Standards Board (FASB) Accounting Standards Codification (ASC) 958 “Not-for-Profit Entities”. Under FASB
ASC 958, the Agency is required to report information regarding its financial position and activities according
to two classes of net assets: net assets without donor restrictions and net assets with donor restrictions.
Net Assets Without Donor Restrictions – Net assets which are available for fulfillment of the Agency’s
mission and which may be expended at the discretion of management and the Board of Directors.
Net Assets With Donor Restrictions – Net assets which are subject to donor-imposed restrictions.
Some restrictions could be temporary in nature, such as those that will be met by the actions of the
Agency or the passage of time, while some restrictions could be perpetual in nature, in that a donor has
stipulated the funds be maintained in perpetuity.
Title: Capital Assets and Equipment
Accounting Policies: The schedule of expenditures of federal awards includes the federal grant activity of the Agency and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of OMB Uniform Guidance. Of the federal expenditures presented in the schedule, the Agency provided federal awards to subrecipients as indicated above.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Agency follows the guidelines promulgated by the Illinois Department on
Aging of expending nonmaterial capital asset purchases rather than capitalization. The Illinois Department on
Aging retains ownership of all material capital assets. Because of this, equipment expenses are shown on
the statement of activities and no capital assets appear on the statement of financial position.