Audit 360635

Title: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES FOR FEDERAL AWARD EXPENDITURES Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards summarizes the federal award expenditures disbursed by Indiana Association of Soil & Water Conservation Districts, Inc. received from the federal government for the year ended September 30, 2024. For the purpose of the Schedule, federal awards include pass-through funds from grants and contracts entered into directly between the Association and state or local agencies and departments of the federal government. Expenditures for these federal pass-through programs, as well as nonpass-through programs, are recognized on the accrual basis of accounting. GRANTS AND CONTRIBUTIONS Grants and contributions received are recorded with or without donor restrictions depending on the existence or nature of any donor restrictions. The Association recognizes revenues from costreimbursement grants in the period in which the related expenses are incurred. Reimbursements requested for grant funds under cost-reimbursement programs prior to related expenses being incurred are recognized as deferred revenue. All donor-restricted contributions or grants are reported as increases to net assets with donor restrictions. When a restriction expires (that is, when a stipulated time restriction ends or purpose restriction is accomplished), net assets with donor restrictions are reclassified to net assets without donor restrictions and reported in the statement of activities as release from restrictions. However, contributions that are restricted by the donor are reported as increase to net assets without donor restrictions if the restriction expires in the year in which the contributions are recognized. De Minimis Rate Used: N Rate Explanation: The Corporation does not utilize the 10% de minimis cost rate because the guidance under Part 200.414 Indirect Costs does not apply. Expenditures consist of direct and indirect costs. Direct costs are those that can be readily identified with an individual federally sponsored program. Benefit payments made on behalf of an eligible recipient and the materials consumed by the program are examples of direct costs. Unlike direct costs, indirect costs cannot be readily identified with an individually sponsored project. Indirect costs are the costs of services and resources that benefit many projects as well as nonsponsored projects and activities. Indirect costs primarily consist of expenses incurred for administration, payroll taxes and fringe benefits.