Notes to SEFA
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. ADRAs affiliate implementing partners are unconsolidated entities in accordance with US 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: The auditee did not use the de minimis cost rate.