Notes to SEFA
Title: Indirect Cost Rate
Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal grant activity of the Johnstown Area Regional Industries, Inc. and its affiliates, Johnstown Industrial Development Corporation and JARI Growth Fund, Inc., collectively referred to as the Organization, and is presented on the accrual basis of accounting. 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). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation, of the general purpose financial statements.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Organization has elected to not use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The Organization applied for approval of indirect cost rates to allocate the following expenses to its various programs. As of the date of these financial statements, the Department of Defense had not approved this rate, however, the Defense Logistics Agency did approve the rates for use on their awards.For the year ended December 31, 2022, the following indirect cost benefit rates were used: ?Fringe benefits 86.76%?Overhead 90.78%