Notes to SEFA
Title: Note 1 – Basis of Presentation
Accounting Policies: See note 2
De Minimis Rate Used: Y
Rate Explanation: See note 3
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award
activity of Lutheran Social Services of the South, Inc. dba Upbring (the Organization) for the year ended
March 31, 2025. The information in this Schedule is presented in accordance with the requirements of
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 the Organization, it is not intended to and does not present the
consolidated statements of financial position, changes in net assets, functional expenses, or cash flows of
the Organization.
Title: Note 2 – Summary of Significant Accounting Policies
Accounting Policies: See note 2
De Minimis Rate Used: Y
Rate Explanation: See note 3
1. 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 allowed or are limited as to reimbursement.
2. The commodities received, which are noncash revenues, are valued using prices provided by the
United States Department of Agriculture. The value of commodities received for the year ended
March 31, 2025, was $4,502 and is reported in the Schedule of Expenditures of Federal Awards
under the Department of Agriculture Commodities program, Federal Assistance Listing Number
10.555.
3. Grants, cost reimbursement contracts, cooperative agreements, and direct appropriations are
considered expended when the expenditure or expense transactions occur.
4. For those funds that have matching revenues and state funding, federal and state
Title: Note 3 – Indirect Cost
Accounting Policies: See note 2
De Minimis Rate Used: Y
Rate Explanation: See note 3
The Organization has elected to use the de minimis indirect cost rate allowed under the
Uniform Guidance.