Title: Major Program Determination
Accounting Policies: The accompanying schedules of expenditures of federal, state and local government awards (the Schedules) summarize expenditures charged to federal, state and local government grants and service contracts administered by Goodwill Industries of Southeastern Wisconsin, Inc. and Affiliates (collectively, Goodwill) for the year ended December 31, 2024. The Schedules should be read in conjunction with Goodwill’s consolidated financial statements.
For purposes of the Schedules, federal, state and local government awards include all grants, service contracts and similar agreements entered into directly between Goodwill and agencies and departments of the federal, state and local governments. The Schedules have been prepared on the accrual basis of accounting. Revenue is recognized when allowable and related reimbursable expenditures are incurred, and upon meeting the legal or contractual requirements of the funding source. Expenditures of government grant and service contract funds are to be used for the purposes specified by the funding source.
De Minimis Rate Used: N
Rate Explanation: Goodwill utilizes indirect cost rates and elects to use the 10% de minimus cost rate as covered in 2 CFR 200.414, Indirect (F&A) Costs.
Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), State Single Audit Guidelines and the Provider Agency Audit Guide, establish certain criteria for the identification of major programs. Under Uniform Guidance, State Single Audit Guidelines and the Provider Agency Audit Guide, tests of compliance with certain types of compliance requirements are required for each major federal and state program of Goodwill. The major programs identified in the accompanying schedule of findings and questioned costs have been determined in accordance with the requirements of Uniform Guidance, State Single Audit Guidelines and the Provider Agency Audit Guide.
Title: Federal, State and Local Award Expenditures
Accounting Policies: The accompanying schedules of expenditures of federal, state and local government awards (the Schedules) summarize expenditures charged to federal, state and local government grants and service contracts administered by Goodwill Industries of Southeastern Wisconsin, Inc. and Affiliates (collectively, Goodwill) for the year ended December 31, 2024. The Schedules should be read in conjunction with Goodwill’s consolidated financial statements.
For purposes of the Schedules, federal, state and local government awards include all grants, service contracts and similar agreements entered into directly between Goodwill and agencies and departments of the federal, state and local governments. The Schedules have been prepared on the accrual basis of accounting. Revenue is recognized when allowable and related reimbursable expenditures are incurred, and upon meeting the legal or contractual requirements of the funding source. Expenditures of government grant and service contract funds are to be used for the purposes specified by the funding source.
De Minimis Rate Used: N
Rate Explanation: Goodwill utilizes indirect cost rates and elects to use the 10% de minimus cost rate as covered in 2 CFR 200.414, Indirect (F&A) Costs.
Expenditures consist of direct and indirect costs. Direct costs are those that can be directly identified with an individual award. The salary of a program coordinator of a federal, state or local government award program and the materials consumed by the program are examples of direct costs.
Unlike direct costs, indirect costs cannot be directly identified with an individual federal, state or local government award program. Indirect costs are the costs of services and resources that benefit many award programs as well as other organization activities. Indirect costs consist primarily of expenses incurred for administration, maintenance, and building and equipment depreciation. Goodwill utilizes indirect cost rates and does not elect to use the 10% de minimus cost rate as covered in 2 CFR 200.414, Indirect (F&A) Costs.
Title: Contingency
Accounting Policies: The accompanying schedules of expenditures of federal, state and local government awards (the Schedules) summarize expenditures charged to federal, state and local government grants and service contracts administered by Goodwill Industries of Southeastern Wisconsin, Inc. and Affiliates (collectively, Goodwill) for the year ended December 31, 2024. The Schedules should be read in conjunction with Goodwill’s consolidated financial statements.
For purposes of the Schedules, federal, state and local government awards include all grants, service contracts and similar agreements entered into directly between Goodwill and agencies and departments of the federal, state and local governments. The Schedules have been prepared on the accrual basis of accounting. Revenue is recognized when allowable and related reimbursable expenditures are incurred, and upon meeting the legal or contractual requirements of the funding source. Expenditures of government grant and service contract funds are to be used for the purposes specified by the funding source.
De Minimis Rate Used: N
Rate Explanation: Goodwill utilizes indirect cost rates and elects to use the 10% de minimus cost rate as covered in 2 CFR 200.414, Indirect (F&A) Costs.
All federal, state and local government awards are subject to review and audit by grantor agencies. Such audits could lead to requests for reimbursement by the grantor agencies for costs disallowed under the terms of the awards. It is the opinion of management that all costs charged against federal, state and local awards are allowable under the regulations of those programs.