Notes to SEFA
Accounting Policies: Note 1: General
The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity
of Hearth Connection under programs of the federal government for the year ended December 31, 2022. The
information in this Schedule is presented in accordance with 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 Hearth
Connection, it is not intended to and does not present the financial position, changes in net assets or cash flows of
Hearth Connection.
Note 2: 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. Pass-through entity identifying numbers are presented
where available.
Note 3: Indirect Costs
Hearth Connection has elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform
Guidance.
De Minimis Rate Used: Y
Rate Explanation: Hearth Connection has elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform
Guidance.