Title: 1. Basis of Presentation
Accounting Policies: The Schedule reflects federal award program expenditures recognized on the accrual basis of accounting. Expenses are recognized as incurred using the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Moreover, expenses include a portion of costs associated with general activities (indirect costs) which are allocated to federal awards under negotiated formulas referred to as indirect cost rates. Government grants are recognized as unrestricted support when received, and the related project costs are recorded as expenses when incurred. Grant expenses, for direct awards, are incurred when grant funds are disbursed to implementing partners. Ocean freight for distributed commodities are recognized as unrestricted support when received and deemed expended when the commodities are on board. Inland freight for distributed commodities are recognized as unrestricted support and expensed when incurred. Commodities to be distributed that were donated by the U.S. Government are recorded as U.S. Government support without donor restrictions when received and expensed at amounts representing the fair value of commodities as determined by CCC when the commodities arrive at the destination port. For distributed commodities at sea on December 31, revenue is recognized, and the commodities are recorded as inventory. ADRA’s affiliate implementing partners are unconsolidated entities in accordance with U.S. GAAP. The amounts listed on the Schedule represent the net amount of activity recorded in the general ledger during the current year, and in some cases may result in a net negative amount due to reasons such as a return of unexpended funds from a prior year or the return of the indirect costs charges based on final rates being lower than the provisional billed rates.
De Minimis Rate Used: N
Rate Explanation: ADRA does not use the 10% de minimis rate allowed by the United States Government. See Note 2 to the accompanying Schedule of Indirect Cost Rate for more information.
The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) summarizes the federal expenditures of the Adventist Development and Relief Agency International (“ADRA”) 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 (CFR) Part 200, Uniform Administrative Requirements, Cost Principle, and Audit Requirements for Federal Awards (Uniform Guidance). The amounts reported as federal expenditures were obtained from ADRA’s general ledger. Because the Schedule presents only a selected portion of the operations of ADRA, it is not intended and does not present the financial position, changes in net assets, or cash flows of ADRA.
For purposes of the Schedule, federal awards include all grants, contracts, and similar agreements entered into directly and via pass-through, between ADRA and agencies and departments of the federal government.
Title: 2. Summary of Significant Accounting Policies
Accounting Policies: The Schedule reflects federal award program expenditures recognized on the accrual basis of accounting. Expenses are recognized as incurred using the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Moreover, expenses include a portion of costs associated with general activities (indirect costs) which are allocated to federal awards under negotiated formulas referred to as indirect cost rates. Government grants are recognized as unrestricted support when received, and the related project costs are recorded as expenses when incurred. Grant expenses, for direct awards, are incurred when grant funds are disbursed to implementing partners. Ocean freight for distributed commodities are recognized as unrestricted support when received and deemed expended when the commodities are on board. Inland freight for distributed commodities are recognized as unrestricted support and expensed when incurred. Commodities to be distributed that were donated by the U.S. Government are recorded as U.S. Government support without donor restrictions when received and expensed at amounts representing the fair value of commodities as determined by CCC when the commodities arrive at the destination port. For distributed commodities at sea on December 31, revenue is recognized, and the commodities are recorded as inventory. ADRA’s affiliate implementing partners are unconsolidated entities in accordance with U.S. GAAP. The amounts listed on the Schedule represent the net amount of activity recorded in the general ledger during the current year, and in some cases may result in a net negative amount due to reasons such as a return of unexpended funds from a prior year or the return of the indirect costs charges based on final rates being lower than the provisional billed rates.
De Minimis Rate Used: N
Rate Explanation: ADRA does not use the 10% de minimis rate allowed by the United States Government. See Note 2 to the accompanying Schedule of Indirect Cost Rate for more information.
The Schedule reflects federal award program expenditures recognized on the accrual basis of accounting. Expenses are recognized as incurred using the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Moreover, expenses include a portion of costs associated with general activities (indirect costs) which are allocated to federal awards under negotiated formulas referred to as indirect cost rates. Government grants are recognized as unrestricted support when received, and the related project costs are recorded as expenses when incurred. Grant expenses, for direct awards, are incurred when grant funds are disbursed to implementing partners.
Ocean freight for distributed commodities are recognized as unrestricted support when received and deemed expended when the commodities are on board. Inland freight for distributed commodities are recognized as unrestricted support and expensed when incurred. Commodities to be distributed that were donated by the U.S. Government are recorded as U.S. Government support without donor restrictions when received and expensed at amounts representing the fair value of commodities as determined by CCC when the commodities arrive at the destination port. For distributed commodities at sea on December 31, revenue is recognized, and the commodities are recorded as inventory. ADRA’s affiliate implementing partners are unconsolidated entities in accordance with U.S. GAAP.
The amounts listed on the Schedule represent the net amount of activity recorded in the general ledger during the current year, and in some cases may result in a net negative amount due to reasons such as a return of unexpended funds from a prior year or the return of the indirect costs charges based on final rates being lower than the provisional billed rates.
Title: 3. Indirect Cost Rate
Accounting Policies: The Schedule reflects federal award program expenditures recognized on the accrual basis of accounting. Expenses are recognized as incurred using the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Moreover, expenses include a portion of costs associated with general activities (indirect costs) which are allocated to federal awards under negotiated formulas referred to as indirect cost rates. Government grants are recognized as unrestricted support when received, and the related project costs are recorded as expenses when incurred. Grant expenses, for direct awards, are incurred when grant funds are disbursed to implementing partners. Ocean freight for distributed commodities are recognized as unrestricted support when received and deemed expended when the commodities are on board. Inland freight for distributed commodities are recognized as unrestricted support and expensed when incurred. Commodities to be distributed that were donated by the U.S. Government are recorded as U.S. Government support without donor restrictions when received and expensed at amounts representing the fair value of commodities as determined by CCC when the commodities arrive at the destination port. For distributed commodities at sea on December 31, revenue is recognized, and the commodities are recorded as inventory. ADRA’s affiliate implementing partners are unconsolidated entities in accordance with U.S. GAAP. The amounts listed on the Schedule represent the net amount of activity recorded in the general ledger during the current year, and in some cases may result in a net negative amount due to reasons such as a return of unexpended funds from a prior year or the return of the indirect costs charges based on final rates being lower than the provisional billed rates.
De Minimis Rate Used: N
Rate Explanation: ADRA does not use the 10% de minimis rate allowed by the United States Government. See Note 2 to the accompanying Schedule of Indirect Cost Rate for more information.
ADRA does not use the 10% de minimis rate allowed by the United States Government. See Note 2 to the accompanying Schedule of Indirect Cost Rate for more information.
Title: 4. Reconciliation with Audited Financial Statements
Accounting Policies: The Schedule reflects federal award program expenditures recognized on the accrual basis of accounting. Expenses are recognized as incurred using the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Moreover, expenses include a portion of costs associated with general activities (indirect costs) which are allocated to federal awards under negotiated formulas referred to as indirect cost rates. Government grants are recognized as unrestricted support when received, and the related project costs are recorded as expenses when incurred. Grant expenses, for direct awards, are incurred when grant funds are disbursed to implementing partners. Ocean freight for distributed commodities are recognized as unrestricted support when received and deemed expended when the commodities are on board. Inland freight for distributed commodities are recognized as unrestricted support and expensed when incurred. Commodities to be distributed that were donated by the U.S. Government are recorded as U.S. Government support without donor restrictions when received and expensed at amounts representing the fair value of commodities as determined by CCC when the commodities arrive at the destination port. For distributed commodities at sea on December 31, revenue is recognized, and the commodities are recorded as inventory. ADRA’s affiliate implementing partners are unconsolidated entities in accordance with U.S. GAAP. The amounts listed on the Schedule represent the net amount of activity recorded in the general ledger during the current year, and in some cases may result in a net negative amount due to reasons such as a return of unexpended funds from a prior year or the return of the indirect costs charges based on final rates being lower than the provisional billed rates.
De Minimis Rate Used: N
Rate Explanation: ADRA does not use the 10% de minimis rate allowed by the United States Government. See Note 2 to the accompanying Schedule of Indirect Cost Rate for more information.
See the Notes to the SEFA for table.