Notes to SEFA
Title: Basis of Presentation
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal grant activity of the Company and is presented on the accrual basis of accounting. The information in the 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). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the consolidated financial statements.
De Minimis Rate Used: N
Rate Explanation: The Company utilizes the predetermined facilities and administrative rate as agreed upon in their Nonprofit Rate Agreement with the Federal Government when charging indirect costs, rather than the 10% de minimis cost rate as described in Section 200.414 of the Uniform Guidance.
The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal grant activity of the Company and is presented on the accrual basis of accounting. The information in the 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). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the consolidated financial statements.
The Company utilizes the predetermined facilities and administrative rate as agreed upon in their Nonprofit Rate Agreement with the Federal Government when charging indirect costs, rather than the 10% de minimis cost rate as described in Section 200.414 of the Uniform Guidance.
Title: UL LLC Federal Expenditures
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal grant activity of the Company and is presented on the accrual basis of accounting. The information in the 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). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the consolidated financial statements.
De Minimis Rate Used: N
Rate Explanation: The Company utilizes the predetermined facilities and administrative rate as agreed upon in their Nonprofit Rate Agreement with the Federal Government when charging indirect costs, rather than the 10% de minimis cost rate as described in Section 200.414 of the Uniform Guidance.
UL LLC, a majority-owned for-profit subsidiary of the Company, is the only subsidiary that had federal expenditures in 2024. UL LLC evaluates its federal expenditures independently of the federal expenditures incurred by other entities within the Company. A review of fiscal year 2024 federal award expenditures revealed that UL LLC has not met the requirement for an audit in accordance with the Department of Energy guidance for for-profit entities. The accompanying Schedule includes only the awards granted to Underwriters Laboratories Inc., not to UL LLC. However, the accompanying financial statements are prepared on a consolidated basis and they include federal expenditures of both the Company and UL LLC.