Notes to SEFA
Title: Basis of Presentation
Accounting Policies: Expenditures reported on the SEFA are recorded on the accrual basis of accounting.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award
activity of Sustainable Resource Center, Inc. and Subsidiary (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 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.
Title: Summary of Significant Findings
Accounting Policies: Expenditures reported on the SEFA are recorded on the accrual basis of accounting.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate
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.
Title: Indirect Cost Rate
Accounting Policies: Expenditures reported on the SEFA are recorded on the accrual basis of accounting.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate
The Organization has elected not to use the 10% de minimis indirect cost rate.
Title: State Grant With Multiple Federal Funding Sources
Accounting Policies: Expenditures reported on the SEFA are recorded on the accrual basis of accounting.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate
The Organization receives funding from one grant from the State of Minnesota Department of Commerce
that is funded through both the Department of Energy and the Department of Health and Human
Services. Each federal funding source is accounted for and reported using different funds although both
fall under the same state grant agreement.