Notes to SEFA
Title: NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: Y
Rate Explanation: The Organization has elected to use the de minimis indirect cost rate allowed under the Uniform Guidance. This rate was 10% through September 30, 2024, at which time the rate was updated in the Uniform Guidance to 15%. The de minimis indirect cost rate utilizes the Modified Total Direct Cost (“MTDC”) basis for calculation, as defined in the Uniform Guidance.
Basis of Presentation
The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of Inclusive Prosperity Capital, Inc. (the “Organization”) under programs of the federal government for the year ended December 31, 2024. The information in this schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Organization it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization.
Basis of Accounting
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
The Organization has elected to use the de minimis indirect cost rate allowed under the Uniform Guidance. This rate was 10% through September 30, 2024, at which time the rate was updated in the Uniform Guidance to 15%. The de minimis indirect cost rate utilizes the Modified Total Direct Cost (“MTDC”) basis for calculation, as defined in the Uniform Guidance.