Notes to SEFA
Title: Note 3: Federal Audits
Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of American Institutes for Research in the Behavioral Sciences (AIR) under programs of the federal government for the year ended December 31, 2022. The preparation of this schedule is in accordance with the requirements of Title 2 U.S.Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Federal Acquisition Regulations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The principal estimates and assumptions used in the preparation of the schedule relate to cost allowability and allocability (see Note D). Actual results could differ from those estimates. Negative amounts shown on the schedule represents adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The allowability of certain costs under government contracts and grants is subject to audit by the contracting agency. Certain indirect costs charged to contracts and grants are subject to revisions based on government audits of those costs. Contract costs are consistent with the cost principles contained in the Federal Acquisition Regulations and other applicable government cost principles; therefore, costs subsequently disallowed, if any, upon audit by the government would not be material.