Notes to SEFA
The accompanying schedule of expenditures of federal awards (SEFA) includes the federal award activity of SMYAL under the programs of the federal government for the year ended December 31, 2024. The information in the SEFA 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 SEFA presents only a selected portion of the operations of SMYAL, it is not intended to, and does not, present the financial position, changes in net assets, or cash flows of SMYAL.
Expenditures reported on the SEFA 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.
SMYAL has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
Reconciliation between federal expenditures per the SEFA, and government grants per the accompanying statement of activities for the year ended December 31, 2024, is as follows: Federal expenditures per the schedule of expenditures of federal awards $ 835,363 Add: non-federal grants 2,138,256 Government grants per statement of activities $ 2,973,619
In order to qualify as a low-risk auditee, SMYAL must meet the conditions set by the Uniform Guidance for each of the preceding two audit periods. SMYAL did not require the Uniform Guidance audit for the year ended December 31, 2023 since the total expenditures of federal awards were below the Uniform Guidance threshold of $750,000 for the year then ended. Therefore, SMYAL did not qualify as a low-risk auditee for the year ended December 31, 2024 since the Uniform Guidance audit was not performed for each of the preceding two audit periods.